mortgage needed - but got debts

mitcharlie

Hi

I have just sold my holiday home and am now in a position to put about £80,000 deposit down to buy a home but unfortunately I am in a lot of debt £17,000 for a car (which i have missed 9 months payments on) and catalogue £4,000 (same missed payments as car) and I owe money to a bank which is about £4,000 altho this is in joint names where the other is not. The car loan is in my name but the car is registered to the other half (where do I stand with this please, I had only made 8 monthly payments on the car loan) and when I rang them to ask for help they said they could not help me as I was unemployed. I have NO ccj's but may have defaults.

I was wondering if I would be able to get a mortgage or not and if I could then would the payments be really high? If this is the case then I might have to think of going down the renting road instead!!!!

All the above are due to personal problems (unemployment & marriage breakdown).

Any advice would be much appreciated.

Mitcharlie

BitterAndTwisted

I can't conceive of a single reason why someone with £25k's worth of debts and £80k of assets in cash wouldn't settle all of those debts immediately.

If the car-loan is in your name then you are personally liable for making the payments for it and no-one else.

Get yourself debt-free before you consider asking anyone to lend you a farthing!

Emmzi

Agreed. the late/ missed payments make you unmortgageable. Use the savings, pay off the debts, rent for a bit.

DVardysShadow

Stop the damage by using some of the money to clear your debts in full. When you have done that, do what you have to do with the money which remains.

BitterAndTwisted

Whatever you do, do not put the proceeds of the sale into any joint-account if the holiday property was wholly owned by yourself and not a joint asset of the marriage! Or you could find that money going AWOL.

poppysarah

If you are unemployed then you won't get a mortgage.

How would you pay it if you got one?

Pay off the debts. Rent. And be happy that you've got a stable start to the rest of your life.

When you have a job you will be able to think about a mortgage.

PasturesNew

House prices aren't going to be zooming up again, so there's no rush to buy again.

Hammyman

The simple truth of the matter no matter how you sugar coat it is that you've absolutely no chance in hell and thats probably going to be the case for a few years.

mitcharlie

Sorry was not really clear I am now in full time employment and the holiday home was in joint names but the sale was all amicable.

I will sort out my debts that will be a priority now that I have eventually sorted myself out and will be visiting the CAB to help me.

But was wondering whether renting rather than buying is a better option but if repayments of a mortgage are going to be as high then maybe I should rent rather than buy another property? I am 53 yrs old eeeeek.

I apologise for misleading you regarding my unemployment position.

I get differing advice from many people like "oh dont rent you have to buy" or forget ur debts and just carry on etc but I have already made my mind up to start clearing these debts.

Thanks for the advice everyone.

Mitcharlie

Emmzi

you *cannot* get a mortgage on anything like a decent rate with missed payments. You need time to heal your credit rating.

Annisele

I may be missing something major, but I don't see why you need CAB to help you sort out your debts. You have £80k in savings and £25k of debt - so why don't you just pay the debts off?

Where are you living now? Is it an option to carry on living there?