mortgage with bad credit rating - help needed

thriftymoo

hi all

I am looking to buy a house asap but i need some advice on mortgage and amount of deposit i would need.

I currently have a default from a credit card and one from a loan which will stay on file until 2013. i would be wanting to borrow about £60k and currently earn £15k.

Can anyone advice whether a bank would lend me this much? i know they would probably want a higher deposit due to my credit rating, but any idea how much? also, would they charge me higher interest coz of my credit rating?

Also, any advice about how much i need to save for fees/surveys etc would be fab!

thanks

L x

mailmannz

By the sounds of it your default is quite recent (2008?) so I would doubt you would be able to get a mortgage from anywhere unless you had a pretty sizable deposit of your own.

Id say you are probably looking at maybe a 30% deposit before the banks would even look at you.

Also, whats your personal debt like? If you have high debt levels then all this will detract from your "credit" worthyness.

Mailman

thriftymoo

mailmannz wrote: »

By the sounds of it your default is quite recent (2008?) so I would doubt you would be able to get a mortgage from anywhere unless you had a pretty sizable deposit of your own.

Id say you are probably looking at maybe a 30% deposit before the banks would even look at you.

Also, whats your personal debt like? If you have high debt levels then all this will detract from your "credit" worthyness.

Mailman

defaults are from 2007 and are fully settled which my credit rating should say. i have no debt to banks or financial institutions, only to my parents.

thriftymoo

i wudnt be buying the house immediately, im talkin 12-18 months as id have to save first

poppysarah

Save as much as you can. You only earn a low wage though - look to increase this perhaps.

thriftymoo

my intention is to save as much as possible im just tryin to get some information about what i would be expected to save.

is there anyone on here who could offer any more advice or who knows of somewhere i could get some free advice?

thx

hethmar

Try a broker.

_Andy_

With a default that recently you'd probably need around 15% deposit.

mlz1413

Go to a mortgage broker who can show you what is on offer, terms and %.

Moving costs vary so its hard to give a figure:
Solicitors / conveyancer £1000 / £500 ish
Hire a van and move yourself £100 or a Removals company £500 +
surveys £150 + some mortgages may include one survey.

Furniture, bed & linen, food to fill freezer, 1st months council tax, £1000 ish, more if you need curtains, nets, carpets etc.

mailmannz

Ok...maybe get a credit score from Experian or Equifax just so you know where you stand right now and then keep your nose clean for the next 18 months and save as much as possible for your deposit.

Who know's, maybe in 18 months time credit from banks will be a lot easier to come by?

As mlz says, make sure you have enough in the bank for the deposit, solicitors fee's, council tax, whiteware (if the house doesnt come with them), power and phone (bt charges £120 for new connections!) and other bits and pieces. You will be amazed how quickly everything starts to add up!

Regards

Mailman