poor credit history - will i ever get a mortgage?

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!

us,thecat&thedebt

i wouldnt reccomend a mortgage before your debt free...

whens your debt free date...

are you renting at moment?

and dont panic...

Beccal_3

my debt free on my cccs DMP is 11 years!!! it's not going to take that long though - putting away a little each month to be able to clear it sooner. So maybe about 6 years from now. I am so sick of not having my own place - have been renting for 5 years now! and i do panic because my mum and dad have always lived in rented accomadation, and always put off getting a mortgage till they were in a better situation - dad is 60 this year.

x

luckyfool

Beccal,

If you are paying rent then you can pay a mortgage. Alot will depend on how much deposit you are able to put down and your exact circumstances. You are almost certainly able to get a mortgage for up to 95% based on the circumstances you describe, though you will be in a much stronger position and able to get much better deals if a 10% deposit is available.

As a sub-prime mortgage broker I speak to alot of people where the deposit can be a problem, in these circumstances a significant percentage receive help from family members or often buy New Build Properties where they have been able to negotiate a 5% builders deposit.

I think a good first step would be to speak to a broker (preferably no fee) about your situation and circumstances going on to get some quotes. London and Country and Moneyquest (my own personal favourite if only because I work there!) would be good places to start. Avoid many of the names that show up on web searches when you search for adverse brokers and quotes. APS, TML etc are mainly owned by specific adverse lenders and will invariably not only limit your choice but charge broker fees often in excess of £2000.

I hope this helps?

Ian_W

luckyfool wrote: If you are paying rent then you can pay a mortgage.

I'm afraid we'd have to agree to disagree on that one. For much the same reasons as BTL new entry investments making no sense to me ATM - increased property prices and in many areas a glut of rental props mean renting can be significantly cheaper than a mortgage on the same property. In addition buying also implies extra upkeep costs, insurances etc.

The OP at 21 & 22yrs of age have got themselves into very significant debt. At that age they ought to try and dig themselves out of it a fair bit more before they consider taking on what is likely to be a huge long term debt. If they are going to be able to reduce their debt free date from 11 to 6yrs they're making a great effort in the right direction. Is more debt rather than paying rent likely to help them? Not IMHO.

As a sub-prime mortgage broker ...

As I said in your post on the housing thread - someone will always lend you money - but, hey, isn't that how you got into debt in the first place? LEARN LESSONS FROM WHAT'S HAPPENED BEFORE! The words, "frying pan", "fire" and "jump" spring to mind!!

mastatimrulez

sorry to sabatage, but me and my girlfriend are in a similar situation, only difference being im debt free but still struggling to find someone to offer a morgage any ideas? would be a great help :rolleyes:

Jay1b

People arent offering you a mortgage? Hmmm.. why? How much are you trying to borrow, try to go no more then 4x your salary - then you should have no problem.

luckyfool

Ian_W wrote:

I'm afraid we'd have to agree to disagree on that one. For much the same reasons as BTL new entry investments making no sense to me ATM - increased property prices and in many areas a glut of rental props mean renting can be significantly cheaper than a mortgage on the same property. In addition buying also implies extra upkeep costs, insurances etc.

The OP at 21 & 22yrs of age have got themselves into very significant debt. At that age they ought to try and dig themselves out of it a fair bit more before they consider taking on what is likely to be a huge long term debt. If they are going to be able to reduce their debt free date from 11 to 6yrs they're making a great effort in the right direction. Is more debt rather than paying rent likely to help them? Not IMHO.

As I said in your post on the housing thread - someone will always lend you money - but, hey, isn't that how you got into debt in the first place? LEARN LESSONS FROM WHAT'S HAPPENED BEFORE! The words, "frying pan", "fire" and "jump" spring to mind!!

I understand where you are coming from here and it's a fair point. I'm just saying that the likelihood is that if they want a mortgage they can get one. Whether they are better off continuing to rent rather than buying is a completely different matter. Obviously they should be very careful to do all their sums and if they do decide to go down the mortgage route , make sure that any mortgage taken on is one they can afford.

luckyfool

mastatimrulez wrote:

sorry to sabatage, but me and my girlfriend are in a similar situation, only difference being im debt free but still struggling to find someone to offer a morgage any ideas? would be a great help :rolleyes:

Speak to a mortgage broker. The bigger the deposit you have the stronger the position you will be in and the better the rates you will be able to get. Make sure the broker you speak to does not charge a fee.

xmaslolly76

I will agree with luckyfool here and say give moneyquest ago they have found us some really good deals on our last 2 mortgages and dont charge the sky high fees other brokers charge. I have had quotes off some brokers who wanted £2000- £3000 in arrangentment fees thats a big chunk on top of any mortgage. Also find an amount you would be comfortable paying out each month and be honest with your figures we found it easier to work backwards with the figures that way we new exactly what priced houses we could and couldnt afford its all very well the banks lending you x amount if you cannot afford to repay it each month. We set ourselves £1000 per month actual mortgage is £850 so we are well within our comfot zone.
I hope it all works out for you and you become the proud owners of your first home soon :-)

sheba2

We have just secured a mortgage with Abbey through a broker. We have a lowish credit score due to some problems a couple of years ago. We were pleasantly surprised that Abbey were able to offer such a good deal.