Help needed

denmark01

Hi All, i am new to this so sorry if i am doing soem thing wrong!!
i am after bit of advise. I am wanting to by my first home i have a very bad credit rating and i am under a debt management plan,i have a full time job and making above avaerge money i can afford to pay for a mortgage and my parents have agreed to go gaurentor...does any one know anything about this..am i in with a chance of getting this..any advise would be aoppreciated:j

BitterAndTwisted

Bad credit-rating. Debt Management Plan. What do you think? Mortgage-lenders only have your past as a guide to how responsible with your finances you have been and this is taken as the only indicator of how you may arrange your affairs in the future.

I'd say your parents must be barking to act as mortgage-guarantors for someone with your history even if you could find a lender.

sirmosh

I don't think it's possible to have a guarantor for a mortgage, if you have a pretty big deposit (although if you did you'd be better using that to pay off existing debts) you might be in with a chance but many lenders may see you as too high risk.

kingstreet

With a high street lender, not much chance. You may have a better chance with an adverse credit specialist at a higher rate. You'll need a 25%+ deposit.

Contact an independent or whole market broker.

sonastin

You should get one lot of debt properly under control before you start thinking about getting yourself into a whole lot more debt. If you have a deposit saved up, use that to clear your debts which will tidy up your credit rating. Between now and when you have another deposit saved, the passing of time will make your poor credit history less of an issue.

If you don't have a deposit yet, you have no chance of purchasing a property regardless of your credit rating or income. Your starting point needs to be clearing the money you owe and putting money aside for a deposit.

BitterAndTwisted

Wait until you have paid off all of your debts and they are registered as "settled" on your credit-reports.

Right now, I wouldn't lend you a fiver without something as security.

Depending on how old your parents are and whether they have a mortgage already, the only way I can see is for them to buy a property and for you to pay them rent. This brings a whole shoal of other potential problems with it, so isn't necessarily to be recommended.

How about paying off your debts and saving up a deposit? If you have a deposit already plus a couple of grand for survey and conveyancing fees it doesn't make any sense in keeping that stashed when you could pay your creditors off with it. If so, have you looked into offering them a full and final settlement?

tbs624

sirmosh wrote: »

I don't think it's possible to have a guarantor for a mortgage

It is possible to have a mortgage with a guarantor in place. Co-op Bank for example iare offering one with just a 15% deposit.

However, as others have said, the OP's previous financial history makes acceptance on a decent rate less likely.

OP - your parents would also need to meet any lender's specific requirements. Have you/they made any enquiries?

Given your situation most people would probably suggest that you sort your current money problems first