Affordable House Mortgages for poor credit

leggie1

Hi,

My husband and I have poor credit history from the past. The past couple of years we have been working to correct this and have alot more desposable monthly income. My husband shares a business with my brother so is classed as self employed.

We booked a holiday a couple of years ago online. Unfortunately do to my husbands business we couldn't go so cancelled. This cancellation was received a couple of days over the terms so the company COSMOS!!! insisted on payment, we refused and consiquently obtained a CCJ. This has been settled.

We both also have arranged payment plans on our credit cards.

With all this credit history we are looking to get an affordable house which would mean us obtaining a mortgage of £60k. We have worked out that we would save £300 by getting this affordable house comparred to what we pay in rent each month!! save! but feel that because our credit rating is poor this opportunity will not happen.

If we started paying the full amount on the credit cards, we still have enough income to save but don't want to put our money in the hands of the credit card company just yet if the opportunity to get a house is Nill.

PLEASE, PLEASE CAN SOMEONE OUT THERE GIVE SOME ADVICE!!

Would we get a mortgage for such a small amount? or should we leave it and start cracking away at those horrible credit cards?

Help

Leggie1

BoGoF

I'm assuming if you have these debts that you have no savings i.e. deposit? Without a deposit you have virtually no chance of getting a mortgage I'm afraid.

opinions4u

Get all your debts in order.

Keep them in order for 6 years.

Save up a deposit of 10%-15% of the purchase price.

Then we're talking!

poppy10_2

leggie1 wrote: »

If we started paying the full amount on the credit cards, we still have enough income to save but don't want to put our money in the hands of the credit card company just yet if the opportunity to get a house is Nill.

You wouldn't be putting your money in the hands of the credit card company. It's their money, you borrowed it from them, and you should pay it back. You say you can afford to pay the full amount and still have enough left over to save - why aren't you doing so?

Yorkie1

Unless the C/Cs are 0%, don't overlook the fact that they are likely to be costing you an arm and a leg in interest payments too. The quicker you pay them off, the quicker you'll be able to save and the less money overall you end up having to pay out on them.