46 with poor credit score will I ever get a mortgage?

Gabby1971 · 10 March 2017 at 1:10PM

Hi all

My darling daughter is now over the age of 18 and has left education and has her first job!
After being a single Mum all her life, my credit history has taken a battering, however I now find myself in a better position financially and have cleared all my debts apart from 1 which I am paying back monthly.
I am 46 and have rented privately for many years however would love to buy a little place of my own but am worried my age and bad credit history will make it a no go.
I had numerous defaulted accounts and 2 years ago a CCJ which has been cleared.
All my current credit accounts - car finance, mobile phone etc are up to date and I recently took out a credit card in order to improve my credit score further (not used it yet!)
In a years time I will be able to cash shares given by my employer which will be worth around £12,000 and the type of properties I am looking at are around £100,000.
Would I be in with a chance of getting a mortgage?
Other options are either having a joint mortgage with my daughter who has an unblemished record, or her getting the mortgage on her own and buying a second property in years to come when she is ready to move out, and I would continue to pay the existing mortgage (the house would be left to her anyway!)
Any advice would be greatly appreciated!

Thanks
Gab

ACG · 10 March 2017 at 1:32PM

I would advise against your daughter getting a joint mortgage with you. Dont take that personally, but if you take out a joint commitment you then become finacially associated and it is not fair on your daughter. Added to that, if your daughter buys a property with you and then wants another for herself, she would be liable for higher rate stamp duty...again not really fair on your daughter.

In your name, with a 15% deposit I think you will have a few options, rates may not be high street rates but they would not be too bad, although I would not rule out high street rates at this stage.

Get your credit reports infront of a good experienced broker and I am sure you will be fine.

Gabby1971 · 10 March 2017 at 2:55PM

Hi

Thanks so much for the advice - I didn't realise the possible impact on my daughter, or the stamp duty issue so I appreciate your help with that.
Will continue to work on my credit score then speak with a broker when the lump sum is due.
We have access to a financial advisor free of charge through work so may book an appointment with him!

Thanks again.

Rich2808 · 10 March 2017 at 6:27PM

Good luck OP - nothing is ever impossible at any age. Lenders will now lend up to age 85 - subject to you demonstrating you can pay the mortgage.

Have you opened a help to buy isa? You can put in £1200 in month one (good idea to max that out in month 1) and then if pay in £200 monthly by month 3 you will have invested enough to get a £400 government bonus when you take out a mortgage for your first home (just make sure your solicitor is signed up). And each month thereafter if you pay in £200 the bonus goes up £50. It will certainly help and is something you can do to start the process and save up.

Your daughter can open one too - and get a lifetime isa in due course as well which is more useful. Shame its not available to over 40s - as surely the government needs to be concerned about people renting in retirement.

Gabby1971 · 10 March 2017 at 7:19PM

Thanks so much for the advice!, I pay a decent amount into my work pension and they also contribute a good percentage - would this be considered as a means to pay the mortgage after I retire?
My Daughter has talked about opening a help to buy ISA ready for when the time comes for her to buy, to be honest I hadn't thought about one for myself but will take a look now.

Rich2808 · 10 March 2017 at 9:10PM

Gabby1971 wrote: »

Thanks so much for the advice!, I pay a decent amount into my work pension and they also contribute a good percentage - would this be considered as a means to pay the mortgage after I retire?
My Daughter has talked about opening a help to buy ISA ready for when the time comes for her to buy, to be honest I hadn't thought about one for myself but will take a look now.

There is a useful guide here - plus details of HTB isa best buys.

There is no age limit for the help to buy isa - an 85 year old buying their first home with a mortgage could get the bonus.

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

As for your pension it might depend if its final salary - guaranteed pension - or defined contribution and how much it might be. You could potentially use a pension lump sum to pay off the mortgage if you get one on your pension scheme. You will need to ask your mortgage provider/broker for advice

46 with poor credit score will I ever get a mortgage?

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