Mortgage for poor credit rating help

Tansypansy

Hi,

It's my first time here and I'm here because I'm finding it impossible to research my problem. I should begin by saying I'm in Scotland as I know it can affect the answer.

My husband and I got into a fair amount of debt a few years ago which resulted in us getting a debt management plan, we have been paying £200 per month for three years now and the debt has been reduced to approx £12,000. When our finances were at their worst my husband's bank account was closed so he currently has no account, he applied for a couple about a year ago but was refused.

In the meantime my husband has left the armed forces and our financial situation has improved substantially. At the end of April he is entitled to a tax rebate of around £8000 which will be used to pay off debt. He is also due to start a new job where our monthly income will increase to £4,800 after tax per month so we aim to be debt free within a few months.

The thing is, we currently rent our home but we are really keen to buy a house. From what I've read online it looks like, despite being debt free and having a healthy income, it may be nigh on impossible to get a mortgage. We have no savings, any money we have coming in will be going to the debt.

Are we stuck? Is there any hope?

Thanks in advance

leereni

I'm definitely no expert but questions will be asked about what your expectations will be in terms of property price, deposit etc...

I believe there are lenders such as kensington mortgages who have a lower criteria when it comes to previous credit history.

Tansypansy

leereni wrote: »

I'm definitely no expert but questions will be asked about what your expectations will be in terms of property price, deposit etc...

I believe there are lenders such as kensington mortgages who have a lower criteria when it comes to previous credit history.

Thanks, I'll have a look at Kensington.

One of the bonuses of living in the north of Scotland is that house prices are substantially lower than most of England, so we're hoping that'll help.

leereni

I'd keep checking this forum though as there are mortgage brokers who will probably give you some sound advice.

Must have good jobs to earn that kind of money in Scotland.

GMS

Kensington don't lend in Scotland so not an option unfortunately.

Tansypansy

leereni wrote: »

I'd keep checking this forum though as there are mortgage brokers who will probably give you some sound advice.

Must have good jobs to earn that kind of money in Scotland.

He's in the oil industry now, it's been a great move. My pay's rubbish, part time.

Thanks for the advice, very much appreciated

Tansypansy

GMS wrote: »

Kensington don't lend in Scotland so not an option unfortunately.

Oh well, I won't bother having a look then

Thanks though.

leereni

What about precise mortgages?

leereni

Just checked and I think they do mortgages for Scotland.

http://www.precisemortgages.co.uk/wp-content/uploads/Precise-Mortgages-Criteria-Guide.pdf

leereni

But don't think they can assist sub prime FTB....

Tansypansy

leereni wrote: »

But don't think they can assist sub prime FTB....

Sorry, "sub prime FTB" ??