Is a mortgage worth it in my situation?

steven_garner

Hi All,

Hope I can get some advice J

Me and my partner have been renting or the last 2 years (this is the first time both of us have moved from home) we were perfectly happy but we have just received out 2 month notice from our land lady who is selling her pub and wanting to move back.
Apart from being absolutely gutted as we love the house the land lady has recommended us to someone who is letting a house across the road (about 9 doors down) she said we can probably come to an agreement to wave admin costs and pay the same rent, we are very appreciative of this offer and viewing the house tomorrow.

We have both been thinking about getting a mortgage to give ourselves some security but afraid we will be declined or a really bad deal, My partner is working full time ~£15000 P/N and I work full time ~£28000PA but also self employed with my own start up business.

Main problem is that I have a very bad credit record from being young and stupid with I was 18-19, for the last 3 years i have got on top of my debt and currently only paying back my car fianc! and personal loan (ending this year) and have no late payment or defaults for the 3.5 years.
I know that my record goes back 6 years so would it be worth waiting until my credit file improves or will they mainly take in to account the last couple of years?

If it makes any difference we are looking at houses in the range of 130-160k and willing to part with a 10-14% deposit.

Thanks in advance.

Steve.

poppy_f1

personally i'd rent for at least another 6 months and get rid of the debt - you will prob stand a better chance
all imo of course

loopy-juice

In the long term a mortgage maybe better than renting depending on your circumstances. There is nothing to stop you applying for a mortgage and having a sum to work with. Be honest and show how you have paid off your debt. Don't allow the dream to own your own house overshadow the reality of a mortgage. Weigh the cost up against renting. Good luck.

steven_garner

Thanks both, i think we will be renting for a while to build up a good deposit - i will defiantly be researching it and keep a close eye on this board.

Thanks

Steve