First Time buyer with bad debt and large deposit!

Emme

Hi all I need some advice please.

I am a first time buyer with a deposit of 25k looking to buy a house of 85k. My salary is 13400 which is pensions and benefits for disability and is due to go up to around 14k.

I have bad credit which has been paid off when I retired due to ill health. They were full and final settlements. I have 3 defaults which are all 5 years old.

I have been told I can get a mortgage of 11% from a non prime lender?? But would prefer a lower interest rate!

The house I would like is corolite concrete which is classed as non standard construction.

Can anyone please advise me on any lenders which may help or where to start. I have a morgage broker looking into this but its taking forever and I need to act quickly.

Please help

Cannon_Fodder

Emme wrote: »

...its taking forever and I need to act quickly.

Act in haste, repent at leisure.

11% would be a really bad choice. No matter how quickly you need to act.

It would cost around £600 a month...can you live on what's left ?

Let your broker do their work.

Not entirely convinced your income supports a £60k mortgage.

Emme

I'm hoping for something lower than the 11%. I can afford to live on whats left as have been paying more than this for rent bills and debts. I'm disabled and not a big spender live quite modestly.

My income does come out for 60 k with some lenders but they wont lend due to defaults. Lloyds who I bank with said they would lend but not on non standard construction.

Due to disability I have a lot of reasons for needing to buy this house as it fits many of my requirements and I cannot find others which are suitable for my budget.

Thanks for responding

beecher2

Can't see how you can afford a £60k mortgage on that income. As CannonFodder says, you'd be paying £600 on 11% and it'd be £400/month on 6%. Add non standard construction, and defaults into the mix and I can't see how you can buy this property

Emme

Thanks for your responce. I have already been advised that I can get the amount I need based on my income by 4 different lenders. But they have different reasons for not lending me the money. On my income I can afford a 600 monthy payment I dont want to hence the first post.

I want to know if there are any bad debt mortgage providers I can contact to see if I can get a better deal.

Before I retired I lived on 400 £ per month for bills food and expenses for 2 years. Now I am retired due to disability I get allowances for council tax which saves me a bit too

I'm not married and have no children I now have no debts and no out goings. My income will be for food bills and mortgage/ house bills and so forth

13400 / 12 = 1100 ish - 600 = 500 I can very easily live on this as I dont drink I dont buy clothes unless my old ones have fell apart I dont go out much.

My debts were from living extravigantly when I was in my 20s before I was disabled and I learned my lesson and now I'm a bargain hunter!

I'm not having a dig I can see how you may think that it would be hard to live on this but I really can. I dont want to and no where have I said I'm going to take it even though I can afford it. I'm desperate for a better deal as I will be homeless in aug.

Rented accomodation for a year will be an Idea untill my defaults have gone and I'll have my other pension of 400 a month by then but I'll loose 4k - 10k off my deposit to make modifications to a rented house to make it fit for my disablility. (if landlord will let me!)

I'm not a person who is saying look at this pretty house I HAVE TO HAVE IT NOW!!!! Its because its already modified for disability that I want to buy it and there are not alot of houses in my area that meet my needs.

Sorry for long post I thought a better explanation of my situation would help.

Emme

does any one know of any bad debt mortgage companies who are still running?!? OR is there anyone out there who can lend me 55-60 grand just kidding.
My mortgage advisor keeps saying it's going to take more time and I'm getting a little anxious.

Trollfever

as I will be homeless in aug.

Are you registered with your local authority housing department?

Emme

Not registered as have income to buy/rent somewhere. The problem with renting is modifying it for my disability which is expensive and cannot get help with it as have large savings. Also paying for mods will eat into my deposit so If I wait untill next year to buy I will have a substantially lower deposit.
Very frustrating!

herbiesjp

Has your broker not been able to find you anything?

The combination of concrete build, and your income stream make this a difficult case to place.

If you are not happy with the speed of the broker, then find another one, and get a second opinion.

g_attrill

Ouch, I was going to say that as a disabled person you might get council accommodation, but of course you are too "rich" for that The other alternative is to rent somewhere nice and live without the modifcations (if you can) and then dwindle your savings down by not living so frugally, then go back to the council and explain that you can't afford to rent.

You haven't mentioned how old you are, but I would think that due to your income you would overall save a lot of money by getting a council/housing assoc rented place, and given you have no dependents you don't really need anything to pass on.

beecher2

http://www.direct.gov.uk/en/DisabledPeople/HomeAndHousingOptions/index.htm

Is there any information in these links that might help you?