Question about getting a mortgage ?

Angel105

Hi

I have never had a mortgage and neither has my mate, but she asked me to ask on here for her the following question...

She has had bad credit in the past after some silly mistakes in her life and her experian and quifax reports are coming up as very poor.
But she has a Trust fund, which she has access to and about a 30k deposit to put down.
She wants to be able to look at a house for about 150k
She is disabled, so does not work, but gets the full rates of DLA and incapacity.

Where does she start, is she dreaming, is it possible, would she have to go the self cert route, are these even available any more etc etc etc

just plenty of advice would be gratefully recieved, as i really dont know what to tell her


Thanks peeps xxx

_Andy_

OK self-cert is where proof of income isn't available - clearly it is in her case so it isn't appropriate. (i.e. it isn't there to 'inflate' someone's income/lie)

1) What is her income?
2) What is the bad credit exactly - can you provide a bit more detail?

Angel105

_Andy_ wrote: »

OK self-cert is where proof of income isn't available - clearly it is in her case so it isn't appropriate. (i.e. it isn't there to 'inflate' someone's income/lie)

Can you class DLA and incapacity as income, i was not sure ?

Her income is around 1000 a month from the government
Her bad credit i dont know we have run through experian and equifax today but they need her to send proof of her address. (she is not on electoral role where she lives at the moment)
She knows she has run away from debt in the past, so maybe CCjs, but small amounts only.

Her trust fund is from a PI settlement and i am not including that in this equation.

dimbo61

£1000 a month is £12,000 a year and the most she would be able to borrow ( if she had a good credit report !!!) is 3/3.5 times her income so £36,000/£42000 plus her £30,000 deposit.
Half what she needs for a £150,000 HOME

_Andy_

Unfortunately her income is nowhere near large enough to get the size of mortgage you mention.

Angel105

This is why i was asking about the self cert.... due to her trust fund sitting there...

_Andy_

Self-cert would still mean her true income is declared and the sources of income still have to be allowed by the lender. A trust fund would not be considered income so therefore wouldn't work.
As mentioned above the amount she wants to borrow isn't at all viable (nor sensible).