could i get a mortgage?

themastertaylor

Hi there, I just wanted a bit of advice, I live with my girlfriend in rented accomodation and we’re looking to move to a slightly safer area. However the rental prices for the properties we’re looking at are around £600-700 per month. I was just wondering whether anybody would give us a mortgage at a reasonable rate? The reason I’m unsure is that our combined annual income is £35200 gross however we met at university and as such have some credit problems. I personally have a couple of defaults and one ccj, whereas my girlfriend is much better off than myself but still has some late payments etc. we’d be needing a 100% mortgage anyway and I’m a little wary that as soon as I commit to buying a house, the companies I owe may see it as an asset to recover what I owe (approx £6000 in total to 4 or 5 companies), as such I’m unsure as to whether to pay the debts first, which may take a few years, before I consider buying.

Any information would be really handy

jobbingmusician

I would really concentrate on paying off the loan first - you are right, your home could be at risk if you have other debts, and then you would lose not only your home but all the money you have spent out on searches, solicitors' fees, moving costs, and possibly stamp duty.

You say you owe approx £6k - is this the actual debt, or does it include interest? Are you planning to pay this off, or are you hoping that if no-one contacts you for 7 years it will go away?

It sounds as if it might be a good idea to post on the Debt Free Wannabee board and take some advice from there....good luck with all your money matters

themastertaylor

i just learnt something there - my debts get erased after 7 years? is that if they don't issue formal proceedings etc or literally getting no contact? i never knew about the ccj until i applied for a lease and they credit checked me - i still don't even know who the ccj is for. i get a few letters for money but normally from collections agencies who seem to work on a pattern of making me a reduced settlement offer, then threatening to take me to court before sending me another offer.

asandwhen

I dont think you should even be thinking of buying a property if you are in that sort of situation - pay off your debts and look again in a couple of years time - To be honest with you I dont think the housing market is going to do much over the next few years anyway so take this time to pay off your debts and start earning more money.

jobbingmusician

themastertaylor wrote: »

i just learnt something there - my debts get erased after 7 years? is that if they don't issue formal proceedings etc or literally getting no contact?

Literally no contact. You do sound quite confused - have a good look round the debt free board, and you can learn a lot (and it will help you pay off those debts in double quick time, so you can focus on building your property empire next! )