Bad Credit Mortgage, what % and would we get one?!

moss999

Hello there,
Bit of a complex one and can't seem to find one answer . We are maried with my 15 year old son living with us and our 3 year old daughter. My Husband has two sons that maintenance has always been paid and no arrears.
Our History is both married before my debt poor but final debts will clear in February My Husband had his own Business and was made bankrupt in 2009 now discharged.
We have both had our houses repossessed before. ( Please do not judge both had gambling/theiving exs)
We have rented for the last 4.5 years. 3 houses never missed a payment or been late but stupidly only have the receipts the bank give you as paid in cash into Landlords account. Have fallen out with them over their refusal to repay our deposit so no go there!
However unfortunatly my Auntie has died and I am one of the many benificiaries. The solicitor has said an interim payment will be made next month ( approx £25,000) then another when house sells ( £40,000 minimum) We owe nothing , have no credit cards. We have always been on the electrol roll.
My Husband works full time and has been with the same comoany for 4 years and is on £25,000 plus car. I only work alternative Saturdays at £2000 per year. Maintenace at £3120 and Tax Credits at £2000 per year.
Desparate to get back on the property market and not waste this money or invest it properly. What do you think our chances our? What sort of % would we be paying on a fixed rate ?
Any tips on what we can do to get a mortgage.
A 3 bed in our area that would need some work would be £230,000! We are currently paying £1000 per month rent .
Thank you for any help or advice

kingstreet

With a bankruptcy and two repossessions, I really would not wish to speculate. Based on the incomes you state, if you had a squeaky clean history the absolute maximum you'd be able to borrow is £150k. That would leave you needing an £80k deposit to buy at £230k.

As an adverse credit lender won't have such high income multiples, you may need to lower your sights a little.

You need to get hold of all three of your statutory credit files;-

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear

which you should take along to a meeting with a good independent or whole market mortgage broker. Ask friends and relatives for a recommendation. Failing that, use https://www.unbiased.co.uk remembering to switch off "sponsored ads only" option so you get a full list, not just the paid-for adverts.

The £2 statutory paper files will be fine. Avoid online schemes you have to pay for which give you your inside-leg measurement and call it a "credit score" as this is different to the lender's, the one which actually matters to you...

ACG

Ive never had to deal with a situation like this before, you would need a specialist adverse broker i think.

As for the purchase price, at a guess i would say you would probably need to reduce the purchase price by around £60-100k. Even if you are lucky enough for one or some of those things to not be showing on your credit report - lenders tend to ask about bankruptcy and repossessions.

Getting a mortgage i imagine would be possible, getting a mortgage of that amount is going to be the hard part.

Thrugelmir

moss999 wrote: »

A 3 bed in our area that would need some work would be £230,000!

Consider buying in a cheaper area.

The inheritance at least gives you a good strarting base. Is it possible for you to save much?

moss999

Thank you Posters that is something that we have considered is moving out slightly to get on the property ladder.
My son is doing his GCSES but would have to factor in travelling time/expenses.
If we move 15 miles further north we can get a property for £190k so hopefully that may be an option.
Will look at the website and check out our credit. Maybe not completly impossible:j