Can i get a mortgage if im in debt already?

Suze4Dan2007

Hi im new here =]

I posted on house buying and renting thread but no one seems to be responding!

I am looking at buying a house with my partner next year. I have debts already, i have store cards and a managed loan with hsbc and i have some defaults to my name. I am now with CCCS and paying back my debts slowly and ive never defaulted or had any missing payments with my loan.

My boyfriend has a clean credit history and no debts to his name. He also has savings which he will put down as a deposit.

I just wondered if i will be able to get a mortgage with my partner with my current situation. We earn 3000pound or so between us and i would still have enough money for everything, im just worried i wont get accepted.

Does anyone know if you can get a mortgage with bad credit?

x

Happytogetdebtfree

i dont really know i dont have a mortgage in my name yet fortunatley my oh does.... i just thought id say hello :d i dont know if i would be rushing for an house in this climate for fear of it going down in price once you have signed the paperwork good luck on the debtfree journey and getting a mortgage xx

sallyx

You say your with the CCCS, what exactly are you with them for? do you have a DMP or IVA? If you have a DMP you are not allowed to take on further debt, that is part of the agreement.

jenjade

this site is great at helping find ways to clean debts up yor income board etc. could you clean some debts they you cresit will be better by the time you want to buy?

Suze4Dan2007

No problem i'm not really rushing into getting a mortgage atm. My partner would be looking to get one once the house prices fall further. I have my managed loan for a year or so still =[ x

SunderlandBlackCat

I know an IFA who told me that until the Northen Rock crisis he used to be able to find mortgages at reasonable rates even for people who still had bankruptcy showing on their files but now he can sometimes struggle for people who are only classed as a moderate risk.

I think you would probably need to discuss it with a whole of market Mortgage Broker. I'm sure I read somewhere that there is a broker that CCCS Recommend but I can't remember their name.

IWantToBeFree_2

Me and my OH got a mortgage last Christmas, at the time we were in around £25k debt between us, and earning around £40k between us, and if I am totally honest, we found it very difficult, which in some way was down to us needing 100% and also because the existing debt. They knocked the payments off our income when working out the multipliers, and in the end we were left with only 3 lenders to chose from, 2 of whom were charging very high interest rates and high set up fee's. Whilst we have a lot of debt, we have pretty clean credit reports...

I would imagne that in the current climate you will find it very difficult if you try and get a joint mortgage, plus, I thought one of the stipulations of a DMP with CCCS was that you couldn't take out any more credit? If you got a mortgage, you will break that term (if it exists) and you may find that CCCS no longer look after your affairs and that if interest has been frozen by other creditors, they start charging again.

Could your OH just go it alone and then you get put on the deeds/mortgage once your own financial situation is sorted?

Suze4Dan2007

I havent actually started properly with CCCS yet. I rang them up and had a chat with them and i have my appointment with them on Monday morning. I was planning on asking them if i would be able to get a mortgage and if not i dont think i would go with them as i dont want to affect my credit rating so badly.

At the moment my debt is currently around 4000pound and i cannot afford to pay off all the debts at once, the creditors keep hasselling with for all of the amount which i cannot afford.

x

sallyx

I suggest that you put up a SOA and lets us help you cut back your outgoings so that you can pay off your debt quicker. Once you have done that and your debt free then think about getting a mortgage. If you can't manage your finances now I fear that you will strugle with all the extra responsibilities and constant drain of finances that a house brings. ( I only say this as I have been where you are!)

CLAPTON

you really need to post up an SOA

but I'm a little confused
but are you saying you have a joint income of 3000 per month (36,000 per year) and your debts are only 4,000 but you can't meet the monthly minimum payments?

In any event get a copy of your credit records ... your rating may already be trashed.
if you get any joint debt/accounts with your OH his credit rating will be adversely affected too.

Airwolf1

Also see my reply in your other thread you started :-)