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mortgage and DMP vs bankruptcy
blissfulbabe
Posts: 162 Forumite
I am looking for some advice regarding a mortgage.
I currently have a DMP with CCCS, 6 months into an eleven year plan, paying back £41 000 at £360 a month.
A family member has asked if I would be interested in purchasing the house I rent from them. They have offered me the house at two thirds the market value (currently £180K) as they were planning to leave the house to myself and my brothers in their will.
I know that if i could get a mortgage it would be at a high interest rate for the first three years, but it would probably be less than my current rent (£765 pm). My income is about £29 300 pa plus another £1 000 in child benefit & tax credit. I know my credit record is very poor at the moment - 3 defaults in the last couple of months. My questions are:
1. Would I be able to get a mortgage for £120 000 (am looking at the summer of 2007)
2. Would I be more likely to get a mortgage if I will be able to show a consistent history of payments over the next two years?
3. Would it be worth considering bankruptcy?
4. Would I better to consult an IFA or an IP before making this decision.
I have never thought about bankruptcy or property before as I believe that my debts are my responsibility but if I think I should explore every aspect of this offer before making a decision as the chance to give me and my children a secure home is too important to just ignore, especially as I will be over 50 before my DMP is finished and I don't have any pension provision.
Any advice would be greatfully received,
BB
I currently have a DMP with CCCS, 6 months into an eleven year plan, paying back £41 000 at £360 a month.
A family member has asked if I would be interested in purchasing the house I rent from them. They have offered me the house at two thirds the market value (currently £180K) as they were planning to leave the house to myself and my brothers in their will.
I know that if i could get a mortgage it would be at a high interest rate for the first three years, but it would probably be less than my current rent (£765 pm). My income is about £29 300 pa plus another £1 000 in child benefit & tax credit. I know my credit record is very poor at the moment - 3 defaults in the last couple of months. My questions are:
1. Would I be able to get a mortgage for £120 000 (am looking at the summer of 2007)
2. Would I be more likely to get a mortgage if I will be able to show a consistent history of payments over the next two years?
3. Would it be worth considering bankruptcy?
4. Would I better to consult an IFA or an IP before making this decision.
I have never thought about bankruptcy or property before as I believe that my debts are my responsibility but if I think I should explore every aspect of this offer before making a decision as the chance to give me and my children a secure home is too important to just ignore, especially as I will be over 50 before my DMP is finished and I don't have any pension provision.
Any advice would be greatfully received,
BB
Don't judge people on they way they look, the way they speak or what they're called because they can't help that.
Only judge people on what they say and what they do.
Only judge people on what they say and what they do.
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