First Time Buyer - Deposit BUT Extremely Bad Debt History - Advice Pls

csrichards

Firstly, let me say hello to you all. This is my first time posting on MSE but have been a fan of the forums for quite some time. Normally I can find the information I require just by looking through some of your threads, but not in the case.

So, here is the situation I need advice on...

When I was 18 approx 6 years ago I started to get credit very easily and up until 5 years ago when people stopped lending to me I had about 60K+ worth of unsecured debt.

Now although I know this is not the best thing to do but I ran from the debt and buried my head in the sand. 5 years have past and a lot of the debts if not all of them have been passed onto debt collection agencies. However when I have contacted a few of these (mainly the oldest debts) they have no record of my debt.

So now I find myself as employed and self employeed earning a very good living. I also find myself coming into approx £100,000.

Now I should also state that out of that £100K I intend to repay family members that I owe to the tune of £21,000. This will leave me with £79K which I wanted to use as a deposit to put down on a property with a large amount of land which will have a duel purpose as we would earn from the land in various ways.

Anyway the property I am looking at is currently on the market for £645,000 and I would have a £79K deposit.

Basically my main question is, which the exisiting debt being so old would I have any chance at all at getting a mortgage?

The majority of my earnings are through self employeed status or some would class a freelancing and the remaining comes through the company I work for.

The earnings I can prove are approx £84,000 a year.

I have also changed my name, but wouldnt look to hide this fact at all.

I know this feels like I have written my life story here, but I really could do with finding out what my chances are?

Thanks very much in advance.

CSR

payless

Even assuming the you have £79K after paying the costs ( stamp duty = £25800 ), you are asking for 88% LTV
Few lenders will consider this over £500K even for a prefect case... ( brands of LLoydsbanking group and a few others)

then we have 6.7X proveable income

Thats without even looking at implication of credit history ( have you done a personal credit check ?)

I don't think the idea got legs

iamana1ias

csrichards wrote: »

Now I should also state that out of that £100K I intend to repay family members that I owe to the tune of £21,000. This will leave me with £79K which I wanted to use as a deposit to put down on a property with a large amount of land which will have a duel purpose as we would earn from the land in various ways.

Who is 'we'?

iamana1ias

csrichards wrote: »

When I was 18 approx 6 years ago I started to get credit very easily and up until 5 years ago when people stopped lending to me I had about 60K+ worth of unsecured debt.

Now although I know this is not the best thing to do but I ran from the debt and buried my head in the sand. 5 years have past and a lot of the debts if not all of them have been passed onto debt collection agencies. However when I have contacted a few of these (mainly the oldest debts) they have no record of my debt.

So now I find myself as employed and self employeed earning a very good living. I also find myself coming into approx £100,000.

Now I should also state that out of that £100K I intend to repay family members that I owe to the tune of £21,000. This will leave me with £79K which I wanted to use as a deposit to put down on a property with a large amount of land which will have a duel purpose as we would earn from the land in various ways.

They have 6 years from the date of your last contact to chase the debts.

You have run up debts of £81k+ in 6 years. Why on earth do you think it's okay to pay your family but not the rest of your debts?

Wipe the slate clean and then save a deposit for a reasonable property.

_Andy_

"Basically my main question is, which the exisiting debt being so old would I have any chance at all at getting a mortgage?"

No.

beecher2

Not a chance. Pay off all your debts and save up a deposit - you earn good money so it shouldn't take too long. However, even once you've paid off your debts and built up another depoist, a mortgage of £500,000 is not going to happen on your income.

csrichards

iamana1ias wrote: »

They have 6 years from the date of your last contact to chase the debts.

You have run up debts of £81k+ in 6 years. Why on earth do you think it's okay to pay your family but not the rest of your debts?

Wipe the slate clean and then save a deposit for a reasonable property.

I don't think it is OK to pay off my family and not the remaining debts, I have just chosen to pay off family first as they are in great need of the money.

I will wipe the slate clean, but is hard to do when very little of the big debts have much of a record of me.

redpete

csrichards wrote: »

I will wipe the slate clean, but is hard to do when very little of the big debts have much of a record of me.

Do they have a record of you under your previous name?

Raggs_2

In short, as stated before, even without your debts, you don't earn enough to meet affordability multipliers.

FraudBuster

Check out your credit files with National Hunter:

http://www.nhunter.co.uk/data.html

csrichards

redpete wrote: »

Do they have a record of you under your previous name?

no they don't