Can someone with experience please help me!!

jessica4

I am 27 and basically I have awful credit from years ago (when I was 18 I applied for everything I could get and never paid it back). I got a mortgage with Birmingham Midshires 5 years ago and although I have had arrears in the past I am up to date now and the same applies to my secured loan with Swift. Eventually I grew up and with the help of the CCCS I contacted all of my creditors and I now pay them £1 a month against my arrears (most of them will take forever to clear but I can’t afford any more and I have just resigned to the fact that I will always have bad credit but at least I am under arrangements to pay and the debts are slowly going down).I also have 3 CCJs, which will all be coming to an end within the next 3 years.
I have now met my partner (who also has bad credit from the past but as he isn’t on the electoral role yet so can’t get a bank account, we don’t actually know the extent of his report, but we are working on sorting all of this out as we speak) and we want to get a mortgage together. We plan on saving £15,000 over the next 18 months/2 years for a deposit and then I plan to change my current mortgage to a buy to let so we have this as an investment for the future.
Is there any advice you can give me to improve/help my situation or in your opinion have we done/are we doing all we can?
I understand it will be difficult for us to get a mortgage but I’m hoping that with a 10% deposit a broker will be able to find us something....do you think this is possible?
Thanks
Jessica

quintwins

you don't need to be on the electoral to get a bank account i'm not and either is my hubby (it's one of those things we keep sayings we should do but never get round to, i really shud do it soon)

there are 10% mortgages out there but they tend to have worse interest and your less likely to be accepeted if you have a bad credit rating and even less likely to be accepted with your partner if he's not on the electorol at which point you may find peopel will start to contact him for there money back, also you may not be able to get a buytolet mortgage and if you do you will have to pay tax of the income and declare it at once point your creditors maybe want more money as you ahve an extra income so you could end up with 2 mortgages, also if you can get buytolet again your interest rate will prob go up

personally i'd offer your creditors final amounts to close the accounts (sorry the name for this has escaped me) then start savings for a house and try to start afresh, nothing like money worrys to drive a couple apart

~Beanie~

You say that you can't afford to pay anymore than £1 per month but aim on saving £15,000? This should be used to pay off your existing debt before you even consider getting a mortgage.

Getting a mortgage will be extremely difficult if not impossible with your debts and CCJ's and your boyfriends bad credit and previous arrears on your existing mortgage and secured loan. Even if you do manage to get one, the interest rate will be at a much higher rate than normal.

paulmapp8306

I dont think a 10% deposit will do you any good.

Ive been looking recently, and am a first time buyer. From talking to mortgage advisors there are mortgages - particularly for 1st time buyers - at 5% and 10% depoists, but unless you have a COMPLETELY clean credit record you dont stand a chance - and even if you have got that record he's only seing 1 in 20 being accepted.

Hes told me a minimum of 15% for first time buyers, and 20-25% for everyone else if pretty much requirted at present - and its getting worse by the day. Despite what you hear, and what the giovernment say, lenders are looking for ANY excuse NOT to lend.

skintdad

if you are in arrears and have ccjs i doubt you will get a mortgage in this financial climate. you say you are paying your creditors back at £1 per month to clear arrears and can't afford to pay more. how will you save £15k over next 18 months/2 years? the only chance you have of achieving this is if you have a lot of equity in your current house as a deposit. i would advise against linking your financial details with a partner with bad debts as good intentions don't always result in a good outcome. you may improve and they may not (or get worse) dragging you down with them. from my experience bad debtors who are not on the electoral roll are usually avoiding being found by debt collectors and have no intention of paying their creditors back. eventually they do get found and get CCJs registered against them. In your case if that happened you could end up in the same situation you are now for the next 9/10 years instead of the 3 years that your CCjs will take to clear. eg, 2 years saving for deposit, year trying to get mortgage, in the mean time OH is on electoral roll, debt collectors find address, they take time trying to establish contact, letters are ignored so they start court proceedings, CCJ against OH obtained, which stays on file for 6 years. if you have any joint credit accounts (current acc, mortgage, HP etc but not credit cards) then you will be financially associated with someone with a CCJ and will struggle to open new credit accounts because of it

Rupinder_Khurana

Hi jessica4

As you guys decide to save upto £15K within a period of 2 years, why not clear off your previous dues? In case you clear your dues, you have a better chance of getting mortgage plus lower rate of interest. Secondly, if you intend to keep up £1 per month, and take up new mortgages, you may not get a fairer deal, as the interest rate will be too high for you to take it for long and you will end up paying up more. Hence you should decide if you want to lessen your burden and enjoy your life with your partner or overload your life and drag it forever.

Regards,

downsizer3

I think your first priority should be to clear your debts - stay put for now and the money you were planning to save should already be going towards clearing your debts. No point in having them hanging over you forever - even if you could get a new mortgage.
You may be able to clear them quickly from the amount you were looking to save - clean that slate! Good luck.

jessica4

:undecidedThank you all for your replies, your advice is much appreciated and a big help
I understand what some of you have said about using my the money I am saving to clear my debst before I use it for a deposit for a new mortgage (I have taken on a second job which gets paid directly in to my savings account for this) but if I do this I am oing to be working 2 jobs for years instead of just the 2 which I have planned for an di just don't have it in me, I just want to move to a new house with my partner and start a new life.
I am fully aware that a new joint mortgage will be on high interest and we are willing to pay that as it is the price I have to pay for my credit history.

I have got debts which I have repaid in full its just that the none priority debts I have that I poay £1 a month to as token payment.
At the point of trying for a new mortgage in say 2 years I will have an up to date mortgage and secured loan, a 10% deposit for a new house, 1 or 2 CCJs which will be due to expire and a few debts outstanding which I pay at £1 a month so I jsut hope that we will be able to find a lender then :undecided

paulmapp8306

doubtfull

the CCJs are whats going to kill you. Its practically impossible to get a mortgage with CCJs on your file - that is within the last 6 years - unless thats what you mean by expire (that is dissapear from your credit history).

Also, 10% isnt a big enough deposit I dont think. As I say, I think you need to lok at 15%-20% minimum in the current market.

paulmapp8306

Just to explain, as I said earlier Im looking for a mortgage at present.

I have 6 "good" files - one of whioch has a couple af months arrears a couple of years ago. I have one debt on an agreed to pay rating (which your 3 token payments debts will be on I susspect - if not the worst Defaulted - check you credit record).

Im a first time buyer, with a 40k job and my wife earning a further £6k. I have just been given a mortgage in principle providing I have a 15% deposit. I was turned down for a 10% deposit mortgage - which is wat led the the discussion with the mortgage advisor.

jessica4

Thank you paulmapp8306, we will try and save more than 10% we might be able to get 15% in the end.
I have 3 CCJs at the moment one is due to expire next year and then by 2013 when we plan to move out I'll have either 1 or 2 left but due to expire in 2014.
I do understand that my situation is not ideal, and that I should really try and be totally debt free before I get another mortgage but that would take years and I just can’t do it, I want to start enjoying my life because we don’t get a long one!
I have just resigned myself to the fact that I will always have bad credit but as I will have my current mortgage as an investment and my new mortgage (which I am fully aware will be on high interest but this is the price I will have to pay for my bad choices in the past) I will be ok.