Will I ever own a home

bextas

Hi Guys,
I am in the process of sorting out my debts (a total of around £20k unsecured debt). I have a terrible credit history, I would never get a mortgage as it stands now having had a house repossessed 5 years ago. Is there any hope for me getting my own home? I will have around £20k for a deposit in the next few months.
Thanks
Bex

Tixy

Hi Bex. It will be very difficult to get a mortgage whilst you still owe £20k to debts you are in arrears.
What is the current state of your credit file? how many defaults do you have on your file and how old are they?

Does depend on what is on your credit file currently but it would probably be advisable to use your savings to pay off your debts and then start saving again. By the time you have saved a deposit your credit file might have improved enough to get a mortgage.

As you are in arrears with your debts then you may find that you can offer reduced F&F settlements to your creditors and so clear the £20k worth of debt for less than the £20k that you will have.