poor credit - will I ever be able to get a mortage?

Beccal_3

both my oh and myself are on debt management plans - we are both young (21 and 22) but have been together years and know we want to buy together. I am really worried that I/we will never be able to do this because of our credit ratings, and that i've bulls up cause i spent too much at uni.

Are there any companies out there that offer good mortgage dead to plums like us that mess up with money when they are young - we will be First Time Buyers. I am so sick of renting - i want my own home!

x

Ian_W

Beccal wrote: Are there any companies out there that offer good mortgage dead to plums like us that mess up with money when they are young

Hi Beccal,
Yep, there's always people who will lend you money - but I guess you know that already because you've got debts! Trouble is they will see you as a higher risk and therefore want a higher % interest rate to cover that risk. Not wishing to be rude, more to the point, how did you get into debt? My guess is wanting things you couldn't really afford so took on debts you also couldn't afford to pay for them. Not being gratuitous when I say that - BUT LEARN THE LESSONS FROM GETTING INTO DEBT AND DON'T MAKE THE SAME MISTAKES WITH A HOME & A MORTGAGE.

First thing you need to do is work to repair your credit history, repay your debts or at least get a good way to doing so before you even think of a mortgage. Next thing is put away some savings. You'll need a deposit for your property and some money for purchasing costs. Don't be tempted with 100% mortgages, they're more expensive and if you can't afford to save up or don't have the discipline to then IMO the time isn't right for you to buy.

You're still both very young and, though you're fed up with renting, don't buy until you're sure you can afford to. Mess up with a mortgage and your credit history will be 10x worse than it is now plus you'll lose your home. Learn about mortgages on this site and when you're ready you'll have a much better idea of how to go about getting a loan.

BoL.

The_Boss

You could always try going to a mortgage broker. You will have to pay (in our case £400), but since they have close ties they can usually swing things your way.

suki1964

I have to agree with Ian, get your debts sorted and start saving now. You are only young, hell me and my hubby never got on the ladder untill we were 30+. Renting isnt that bad when your young and you want money for other things in life. A mortgage is a huge commitment and you need to be sure you can afford the payments and allow a bit extra just in case rates change. Going for 100% mortgage(at a higher rate as you are already high risk) is suicidal when you are already struggling with debt

NervousYetFeisty

House prices are stupidly high now and you're very young. Sort out your debts then save a deposit and you never know, your timing might be just right to buy at the bottom of the market as opposed to the top. I think buying now at the top of the market, with a mortgage from a firm that lends to plums (lol!) and is therefore charging you a high, high rate would be a big mistake.

Good luck!

sashacat

try going to London and Country as brokers...they are recommended by Martin and don't charge a fee as they get commission from the mortgage companies. be honest with them and they will tell you whether or not you stand any chance of a mortgage and, if so, at what rate