Can someone with experience please help me!!

qpop · 19 October 2011 at 12:56PM

I'm afraid that with a credit history like that, unless you focus on repaying your debts, rather than saving money for a house, you won't get a mortgage.

A 90% LTV mortgage (or any LTV up to 75% - that is 25% deposit) is considered by mortgage lenders as particularly high risk. One whiff of poor credit and you won't be able to do it.

That is the unfortunate truth, I'm afraid. There's no way to sugar coat it. I'm speaking from experience of underwriting mortgages for a major high street bank for a fair while.

I'm not sure what the interest rate arrangements on the debt you've arranged to pay are, but look at this guide from the main site: http://www.moneysavingexpert.com/savings/pay-off-debts

If ANY of your debts are accruing interest you are literally throwing money away by saving.

If you're serious about getting on the housing market then I think the way forward is:

1) Repay all debts first
2) Save up as much deposit as possible
3) Wait (once debts are repaid, 2 - 3 years would be the minimum for the historic defaults/CCJs/mortgage arrears to be less of a concern to a lender)
4) Apply for a mortgage with as much deposit as possible (20%+)

I'm sorry if the above comes across as harsh, but that is the reality of it.

Soot2006 · 19 October 2011 at 8:20PM

Don't forget lenders will also be taking your debts into account when looking at affordability. By clearing them at £1/month, you're hardly putting a dent into that number. Couldn't you up that just a little; e.g. to £20/month? I'm pretty sure if you're able to save £15,000 in 18 months, your creditors might also wake up to the fact you have more income?!