Stephen Fox is senior corporate account manager at Chelsea Building Society
“Gerry has had a tough time of it over the last few years and it’s clear why he would now want to get his life back on track.
"The case will not be completely straightforward due to his unsatisfied CCJs and the fact that he has been bankrupt. His missed mortgage payment earlier in the year will also be a factor.
"There are many lenders who offer credit impaired mortgages and would consider circumstances such as CCJs and discharged bankruptcy. One of Gerry’s priorities must be to re-establish his credit worthiness and maintain his mortgage payments.
"A solution could be Chelsea’s Prospect adverse mortgage, which allows unlimited number and amount of CCJs and defaults, bankruptcy discharged over a year ago and a missed mortgage payment, provided it was over six months ago.
"An added benefit would be that Gerry would be eligible for one of Chelsea’s mainstream existing borrower mortgages if he maintained his mortgage payments for two years.”
Tom Guest is a mortgage consultant at Mortgage Options
“If Gerry had been in this position six months ago things would have been different, but due to the recent turmoil in the non-conforming market, his situation is now one which lenders are shying away from.
"The issues of bankruptcy or the missed payment are not restrictive, nor is the loan amount. The biggest hurdle will be the CCJs. The amount of these put him into a heavy/unlimited bracket, which is an area lenders have either pulled out of completely or reduced their LTVs.
"Assuming none of the CCJs are satisfied, I think borrowing at 90 per cent LTV will be hard to find, and, if a lender will accommodate him, this will reflect heavily in the rate of interest charged.
"I would suggest Gerry looks at trying to keep his loan to 85 per cent LTV, which will open up some lenders to him, Future being one of those options.”
Alan Lakey is a partner at Highclere Financial Services
“Gerry is one of those unfortunates whose options have been severely limited by the recent credit squeeze. He fails with every lender for one or more reasons – his £16,000 of CCJs is too high and having five CCJs is another hurdle.
"Add to this his discharge from bankruptcy and the matter of having only a 10 per cent deposit and you have a mix that is far too strong in the current climate. Even the ‘unlimited’ adverse cannot assist, as they are not actually unlimited.
"So what options does Gerry have? Firstly, if he is downsizing, his current lender may be able to be flexible. Also, if he can find a property valued at £180,000 or less he will be an 85 per cent borrower, enabling greater flexibility. Finally, at some point in the next year, his CCJs will be two years old, allowing him to fit within certain criteria.”
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