Not sure where to start!

leebarton

We moved up to north scotland last year and are currently in rented accommodation. The landlady is messing us about a fair bit and I am at a stage where I just want out. There are several issues.
We would like to buy a property to do up - so it may not be classed as habitable.
We have about £25k debt in a loan and two credit cards.
I earn £20k a year, but my contract runs out next July.
Hubby is self-employed - our third year - the business has broken even and may have a turn over of about £25-30k this year.
My credit history is not good as I have tried to be a rate tart and it hasn't worked! Have now read lots and understand so much more!!!
I currently pay £450 a month rent, and £150 for workspace which could be housed in a new property.
Do I have to put up with where I am or is there light at the end of the tunnel?

homer_j_3

I would sugest that you get a copy of your credit records from experian or equifax. If you go onto debt free wannabe threads, they should be info on how to do this and for free or minimal cost.

We would need to understand both your income situations a little more - I presume you are a contractor, do you have a good history of continued work or do you have an option to renew or anything else planned?

With regards to you Hubbys self employed work, does he have accounts, what does he draw as an income?

It would also help if we understood what property prices you would need to look at as we need to understand if your borrowing capability will allow you to do what you want.

There is nothing wrong with renting and it could be better for you to sort your debt and finances out a little further before you commit to a mortgage. Would there be an issue with finding another property to rent?

Ultimately, my advice would always be to seek professional help with a broker as they will be able to do a full analysis of your circumstances and give you specific tailored advice.

leebarton

Thank you for your reply.

I am a community worker with the local council on a temporary contract for a two year period which is due to finish next July. We are currently going through a review and it is hoped that the job will be made permanent.

The business is making handmade belgian chocolate. We are in the third year of books so we do have accounts, but we have worked hard to put as much as possible back in to the business so we have drawn very little of it.

We are looking to buy a steading for around £70k, but realistically would only be able to manage a £3k deposit. I was reading about combining our debt with a mortgage to benefit from a better rate, which I would be interested in doing. I have no objection to living in a caravan whilst we work on the house and would look at getting a workshop up to grade very quickly to save on renting space as we do at the moment.

The difficulty with renting elsewhere is that we have a portacabin as work space which is currently in the adjoining field to where we live as we are way out in the country. We also keep chickens and ducks, which I have to be honest, I don't want in the freezer just yet! We do have friends who may be able to help with this as required.

I guess I want to know if it is possible or wise to try and go down this route at this stage. The lease is directly between myself and the landlady. We were meant to get a portacabin and an acre of land which never got sorted out and we now know she is 'borrowing' things from the outbuildings and managed to switch off our freezer this week. She hasn't admitted anything yet - in fact, she has stopped talking to us at all right now!