Being made redundant, just cleared debt- getting a mortgage worries

Darth_chaffinch

Hi,
I became debt free in September (thanks MSE), but have this week found out our whole site is closing. We own our house (in wife's name), but she is a childminder and due with our 2nd child in June just as we get the boot...

My big worry is that by the summer when we'll need to move my credit rating will not be good enough to get a mortgage, and my wife's salary is obviously very low even when she's childminding. (There's zero jobs for my skill here)

Am going to apply for a credit card pronto (was told by my bank to try after xmas) to start rebuilding my rating, but what are the chances of this helping?!?!? Are we stuffed?!??

Desperate,
DC

ShAnE

As you are debt free? Could you start saving up some, to try and help keep you going for a few more months?
Have you previously posted a SOA? Maybe that would help try and drive down the costs for you to save more?

Can you not look into other areas of work, even if it's working in a shop full-time. It may just be enough to pay the bills, while you re-build your credit rating.

I'm sure someone more helpful will be along shortly, but where there's a will there's a way.

Tixy

I think its a good idea to try to rebuild your credit rating - but in terms of getting a mortgage it sounds like your issues will be with the level of income, if you were unemployed you would be unlikely to get a mortgage whatever your credit history.

Darth_chaffinch

Thanks, I have just had a job offer, but there are ethical issues with it so not sure.. But if I get a job say in 6 months time will I even be touched by a mortgage broker?

edit: of course am saving, and will get enough redundancy to live off ok for just over a year- we spend very little after budgeting during paying off my debt.

Tixy

How bad is your credit history at the moment Darth?
If you have defaults it is not impossible to get a mortgage, although you usually need to speak to independant mortgage advisors rather than just contact the big banks yourself. You probably won't get the best deals on the market so it will be a case of if you can afford the deals you can get. But even if you have a slightly higher APR then hopefully in a few years when your file looks better you should be able to find a cheaper deal.

Darth_chaffinch

Thanks Tixy- have just this morning been approved for a credit card with my bank :j - obviously have learnt my lesson though from before... so will just use for specific use!!