mortgage advice

kirky118

hi all, i'm new to this website but it has already been a great help as i've started to claim back bank and credit card charges, anyway, my fiancee and i are looking to buy a house within the next 6 months to a year. i have a £6000 debt which is currently with a debt collection agency, which has effected my credit score (i assume). i am currently in the process of getting this information from expedian, in the mean time i am getting one of those cashplus credit builders to improve my rating (not ideal i know). i did a questionairre on moneysupermarket and it came back that i was in the fair risk bracket (think maybe a bit higher tho). i earn about 22k(been there 3 months) a year, my fiancee is currently unemployed but looking for work. i have a meeting with citizens advice bureau about my £6000 debt. i was just wondering if anyone had any advice about whether i would be considered for a mortgage and roughly how much? if so could i get a mortgage and add my £6000 debt to it and pay it off that way? i also understand its the norm to have at least a 10% deposit, but is there ways around this?
sorry about the long winded story, just thought it better to put all the facts down.

_Andy_

Kirky - do you have any deposit at the moment?

getmore4less

I would say forget it.

one low income no deposit and outstanding debt with a collection agent.

do you actualy owe this?

I don't think credit builder will do you any good you need to be clear the debt.

How much are the places you are thinking about?
What is the rent you currently pay?
How much do you save each month?

Ian_Griffiths_Halifax

On top of any deposit you'd need Solicitors fees, valuation fees, Stamp Duty if over £125,000 Purchase. If you are able to save up for this lot, then don't bother, just pay it off your debt and look at buying a house in a few years time.

arkie

Bad credit is bad credit, it will show on your file for 6 years, no matter what you do. There is no way that i know currently of adding the debt to your mortgage. My advice is forget about buying a house, use the money to pay off your credit, dont pay reduced amounts pay it off ASAP, the longer you have this bad debt on your credit file the harder it will be to get a mortgage. ( CAB will advise you to go into a debt management plan and this will ruin your credit record for even longer, becareful with the CAB ive had people come to me after a visit to CAB and find themselves that they are in a worse situation than they were before going to CAB, ie more defaults and ccjs)
You will need a sizeable deposit unless you are going for shared ownership.