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Bad Credit Mortgages Criteria Improvements for First Time Buyers

Bad Credit Mortgages Criteria Improvements for First Time Buyers

Bad Credit Mortgages Criteria Improvements for First Time Buyers

Kensington Mortgages have made a welcome return to first time buyer bad credit mortgage lending this week (6th November 2012) following their withdrawal from the first time buyer mortgage market last November.

Launch products are quite aggressively priced with 2 year fixed rates available from 3.44% with 25% deposit or 4.74% with 15% deposit. They are also offering a free valuation for mortgage lending purposes for first time buyers.

Their niche criteria still remains in place and they will consider one years trading for the self employed as well as ignoring historic adverse credit (CCJs and Defaults registered over 2 years ago) for first time buyers. The only caveat on this is that any CCJs must be satisfied but defaults can still be outstanding. They will also tend to ignore mobile phone defaults even if registered within the last 2 years on a case by case basis so contact Mosaic Mortgages to discuss your individual circumstances to see whether you fit lending criteria for Kensington Mortgages or one of the other specialist bad credit mortgage lenders that we have access to.

If loan to value > 80% (Maximum 85% loan to value) and applicant is a first time buyer then minimum sole income is £35,000 or joint income is £40,000 but below 80%, minimum income is £18,000 sole or £25,000 joint. Maximum advance is based on an affordability assessment. Minimum purchase price is £90,000 unless it’s a new build flat which increases to £120,000 and the loan to value is also restricted on new build flats to 75% maximum loan to value.

It’s refreshing to see a lender actually clarify lending criteria on payday loans as this is hidden criteria with all specialist bad credit mortgage lenders who categorically decline applications if recent payday loan advances are identified on the credit search. Kensington Mortgages will only consider an application as long as there are no payday loan advances within the last 12 months. If more lenders were open with their lending criteria in this way then it would be easier to educate potential borrowers against the evils of falling into the payday loan lending trap.

Mosaic Mortgages are specialist bad credit mortgage advisors and will happily review your specific circumstances to recommend the most appropriate scheme for your circumstances or advise you on the best way to be in a position to be approved for a mortgage in the future. Contact us today for all your bad credit mortgages enquiries.

The author, Shaun Bielby has over 25 years experience in financial services and is a specialist mortgage and protection advisor with Mosaic Mortgages who are mortgage brokers that give independent mortgage advice to first time buyers, borrowers with an adverse or bad credit mortgage history or those looking to invest in buy to let.