First Time Buyer, Bad Credit, No Deposit

xacesx

Hi all,

Me and my husband are hoping to buy our first home together soon,
just wondering if someone can give us some advice.

We've seen a house we like for £109k and we have a combined annual income of approx 41.3k, however we have a couple of defaults on our credit files and are currently trying to pay off approx £5 in debts and an addition £6k to our parents (£460 monthly payment for all debts). Also we have no deposit.

The main question really is do we have a hope of getting a mortgage? Or would we be better of continuing to rent and save up a deposit, finish paying off the debts and then give it another go in a couple of years?

Also if anyone can give us some approximate figures of the fees that we will need to pay we'd really appreciate it, complete newbies but we're desperate to own a home!

thanks all!!

xacesx

purcel

No chance of a mortgage without a deposit!! Pay off your debts and start saving.

_Andy_

with no deposit, even if you didn't have adverse, you still wouldn't be able to get a mortgage.

opinions4u

xacesx wrote: »

The main question really is do we have a hope of getting a mortgage?

Today? Absolutely none whatsoever.

Or would we be better of continuing to rent and save up a deposit, finish paying off the debts and then give it another go in a couple of years?

You need to do a number of key things:

1) Make sure you make all your payments for bills / credit on time. Don't miss anything. Don't pay late. This will ensure that your previous "poor form" gets pushed back in time. The older it is the less relevant it is.

2) Save as much as you can. Get over to the Debt-free Wannabe part of the forum for ideas on spending less and earning more.

3) While difficult to do alongside these, try to get your debts down too, targeting the highest interest rate first.

Also if anyone can give us some approximate figures of the fees that we will need to pay we'd really appreciate it, complete newbies but we're desperate to own a home!

Deposit: 10%-15% minimum, but possibly 25% with a poor credit history. £11k to £27.5k.

Mortgage Product Fee: Typically £999 but can vary.

Homebuyer's Valuation: £600ish.

Solicitor: £800ish.

Money to cover all sorts of unexpected things that crop up within days of taking on a new house: £1000 and preferably more!

When you get to £10k check back in ... it may be that 95% mortgages are more common then, but don't count on it!

xacesx

Thanks for your help guys, bad news but has given us a bit of a push in the right direction. thanks for taking the time to post