Mortgage with poor credit?

jiggerypokery_2

I hope someone can help. we currently rent our home and have done for the last 2 years - our monthly rent is £660 which at the moment we find it ok and we havent missed any payments in the 2 years.
We have been thinking about buying for some time now as we know that paying a mortgage will be a lot less than what we pay now - and also it will be our home and not throwing money away so to speak.
My question is: we have a poor credit rating, little or no deposit and no idea whether we are likely to get a mortgage in the near future.
My husband earns £25k a year
Does anyone know if theres a possibility of getting a mortgage - is it a good idea rather than renting or are we likely yo have to wait decades until either the house prices come down or our credit improves?
Many thanks in advance - sorry for the long post

herbiesjp

Basically, the answer to your question is yes - people with poor credit can get mortgages.

However, you provide very little details about why you have a poor credit history, and also give no details of the loan amount you are looking to achieve.

If you think this is too personal then by all means send a pm to discuss in more detail.

However, more generically, if you believe the rent is costing more than the possible mortgage you want, and you are very keen to purchase a property of your own then there is no reason why you should not investigate it further.

If you are right, and you do have a poor credit history, then the rate you can get may be a lot higher than you believe. This being the case it may turn out that your rent still works out cheaper for you.

So you may not need to wait for properties to come down in value depedning on what it is you are looking for.

Your personal circumstances and affordability are what will dictate your choices here.

jiggerypokery_2

many thanks for replying.
I know we have poor credit because I have looked at our credit report. a couple of years ago my husband was made redundant and we ended up with alot of debts including a CCJ. We did clear the majority or debts and there are only a few small amounts that are being paid off.

I am also worried about the high interest rate that we are likely to incur due to the credit.

Anyway, Houses down here (hampshire) are around £140k and as I mentioned, we have little or no deposit so we would be looking to borrow as much as possible. I dont know what amount we could borrow on my husbands wages? I beleive its about 3times in which case I dont think we could do it as house prices just wouldnt reflect that.

In short we would really need to borrow in excess of £100k ?

herbiesjp

An important factor affecting your choice of lender boils down to what has been settled and how long ago, and also what is still outstanding and what are the amounts.

If a lot of this is confined to history then it may be the case that normal mainstream lenders will "ignore" some of these events.

In this respect therefore, you may find a lender that will lend based upon an affordability calculation rather than income multiples, and maybe increase the amount you may borrow whilst keeping "normal" rates.


Again without knowing your circumstances it is difficult to be more specific here on the board.

chrisall

Find a mortgage advisor who is a member of the Zurich Advise Network ..... I used Reeds Rains personally ask them about ZAN Enterprise.

http://www.enterprisehomeloans.co.uk/