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  • FIRST POST
    • Gabby1971
    • By Gabby1971 10th Mar 17, 12:10 PM
    • 3Posts
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    Gabby1971
    46 with poor credit score will I ever get a mortgage?
    • #1
    • 10th Mar 17, 12:10 PM
    46 with poor credit score will I ever get a mortgage? 10th Mar 17 at 12:10 PM
    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
Page 1
    • ACG
    • By ACG 10th Mar 17, 12:32 PM
    • 15,387 Posts
    • 7,781 Thanks
    ACG
    • #2
    • 10th Mar 17, 12:32 PM
    • #2
    • 10th Mar 17, 12:32 PM
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Gabby1971
    • By Gabby1971 10th Mar 17, 1:55 PM
    • 3 Posts
    • 0 Thanks
    Gabby1971
    • #3
    • 10th Mar 17, 1:55 PM
    • #3
    • 10th Mar 17, 1:55 PM
    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
    • By Rich2808 10th Mar 17, 5:27 PM
    • 475 Posts
    • 384 Thanks
    Rich2808
    • #4
    • 10th Mar 17, 5:27 PM
    • #4
    • 10th Mar 17, 5:27 PM
    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
    • By Gabby1971 10th Mar 17, 6:19 PM
    • 3 Posts
    • 0 Thanks
    Gabby1971
    • #5
    • 10th Mar 17, 6:19 PM
    • #5
    • 10th Mar 17, 6:19 PM
    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
    • By Rich2808 10th Mar 17, 8:10 PM
    • 475 Posts
    • 384 Thanks
    Rich2808
    • #6
    • 10th Mar 17, 8:10 PM
    • #6
    • 10th Mar 17, 8:10 PM
    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.
    Originally posted by Gabby1971
    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
    Last edited by Rich2808; 10-03-2017 at 8:30 PM.
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