buy council house with bad credit

mrschap

Hi

I really want to buy my council house but the problem is my credit rating. I am in a debt management plan (although i actually never missed or was late with any payments) - after a seperation i acted in taking out the plan to avoid ever being late with payments but i think it has wrecked my chances of getting a mortgage.

i should be able to buy my council house for about 40,000 (as i get 20% discount for being a tenant). i earn 21k a yr. i would even be happy to take a co ownership deal.

i just want advise on what i need to do to be able to get a mortgage? i got a copy of my credit report and i cant find a credit score on it anywhere - i can just see all my lenders so it hasnt helped!

i have not applied for a mortgage as apparently putting a mark on my credit file will lower it.

i have 5 years left on the dmp but i would love to buy the house asap. can you help me by advising if there is any chance of even getting a higher interest mortgage? or what steps should i take in the long run to improve my chances. ( i have just ordered a credit card and am setting a dd up to pay it of in full each month - to try and improve my rating).

thanks for helping

ACG

How much deposit do you have to put towards it yourself?

Forget the credit score on your credit report, its worthless - every lender scores in their own way anyway.

sockpuppet

You dont need a deposit if you are buying it via RTB.

But I'd be very surprised if anyone would accept a mortgage application while you were still in a DMP

mrschap

Thanks, my dad said he would give me £5000 for a deposit if needed so i would have that.

Do you think i would need to pay the dmp of first then?

thanks for helping

Dan-Dan

put the 5k towards your DMP ?

Yorkie1

You probably know this already, but it's worth flagging up anyway ... if you do succeed in buying your council house, will you have the financial reserves to maintain it yourself, and to pay the council if they insist on doing repairs to all properties locally and charge you your element?

kittiej

You will need to look into the rules regarding RTB because I'm sure you can't buy if you are having debt problems.

I think it might have something to do with the possibility of being made bankrupt and potentially losing your home but you would need to check.

As others have said pay off your DMP first.