Can I get a mortgage?

JoJos_3

Hi, I earn £32,000 a year, with no credit cards, overdraughts etc. I was dismissed from bancruptcy in 2007. I plan to save a deposit to buy a house, but would I even get a mortgage for the balance? Any ideas, or will this be impossible?

thanks
Jo

Engeroosi

How much you looking to borrow? How much deposit are you planning on saving?

JoJos_3

Looking to save about £50k, and then see how much mortgage I can borrow I guess. Probably £140k roughly?

maninthestreet

JoJos wrote: »

Looking to save about £50k, and then see how much mortgage I can borrow I guess. Probably £140k roughly?

How long is it going to take you to save £50K on a gross income of only £32K ???

JoJos_3

very constructive, thanks, already half way there actually, not actually the question I asked, so don't bother replying again.

Engeroosi

JoJo's,

Maybe the response wasn't constructive as you had hoped but we are not mind readers. Weren't to know you had saved half of that already. With your response you might find alot of others will not respond to your question now. I hope they still do.

In the time it takes you to save the remaining amount it gives you more time to prove your credit worthiness. I would think on 32k you could borrow around 120k plus your 50k deposit so would be looking at a property in region of 160-165k. There are various expenses involved in getting a mortgage, purchasing a property and also furnishing.

maninthestreet

JoJos wrote: »

very constructive, thanks, already half way there actually, not actually the question I asked, so don't bother replying again.

It's going to take you at least another 4 years to save the other £25K you need. So, do you think any answers you get now about whether or not you can get a mortgage will still be valid in June 2015??

JoJos_3

My response was a direct response to a sarcastic reply to my question. I'm sure other people will be helpful without judging what I'm trying to achieve. Even if it takes me 20 years to save the money, I don't think it deserves a response like that.
Mind reading has nothing to do with it. My question is CAN I get a mortgage with my history regardless of a deposit, otherwise I am wasting my time.
I'm sure there are plenty of helpful people on the forum.

[Deleted User]

Go talk to a mortgage broker.. you'll get much better sense than asking in here

JimmyTheWig

JoJos wrote: »

very constructive, thanks, already half way there actually, not actually the question I asked, so don't bother replying again.

I think that the triple question mark at the end was over the top, but I think the question is valid and important.
You were dismissed from bankruptcy 4 years ago. The longer it takes to save the deposit the further away from bancruptcy you will be. Which is relevant.

Do you know anything about credit ratings? Ignore the credit score that you can pay to receive, it means nothing. Your credit rating is based on all sorts of things and different banks score it differently. But basically it is a question of how good a borrower you are.
Consider that a friend asked you to lend them a significant amount of money. Consider what past history might make you say yes or no.
If the last time they borrowed money from a friend was 6 years ago and they never paid it back you might say no. If they borrowed money from a friend 6 years ago and never paid it back, but in the last 2 years they have borrowed from friends on a regular basis and always paid it back in full and on time you are more likely to say yes.

My point is that say it takes you another 2 years to save the deposit that you want. Spend that time building up a good credit history.
Only do this if you think that you can be disciplined (it's a question of how much you have learned your lesson from bancruptcy!), but a good way to do it is to take out a credit card.
Spend on the card each month. Only spend on it what you would have spent anyway (e.g. weekly shopping, petrol). Pay off the balance in full each month, on time. This means that (a) you won't pay interest and (b) you won't slip back into debt.
This will stand you in good stead for a future mortgage application.

JoJos_3

Actually my bankruptcy was not of my doing, I had to take a company to a tribunal and due to them, couldn't find another job, and had to pay for a lawyer, with no income I couldn't pay for my outgoings, therefore declared myself bankrupt. And by the way won the tribunal.So you may not want to jump to conclusions.I currently run three businesses, have a business account, so obviousley not deemed a high risk anymore. Think I will get advice from someone not so patronising. Thanks anyway!