bad credit.. mortgage or rent only option ?

Adsanders1977

Hi I'm looking for some advice.

i'm 34. Because of my silly lifestyle I run up some credit card, loans and account debts. This has been going on a few yrs - payments through CCCS. this then somehow cancelled when I started working abroad because of a missed payment. I didn't find CCCS very helpful so I decided to start making payments myself. I owe approx 13,000

My problem is I now need to find somewhere to live in UK. its not convenient to live at my mothers anymore. on both sides. there just isn't enough space because of her & step fathers family.

I am now looking at renting until today I was sent information on first time buyers mortgages at reasonable newly built house prices.

What I wondered after not being able to find the information i'm looking for, would I ever be able to do this. with my bad credit history. I know I will have alot of defaults on my history.

I now earn quite decent money so could afford my expenses.

Should I just accept the fact that renting is my only option or does anyone know a way around this ?


any advice will be much appreciated.

Yorkie1

With that amount of debt, and - assuming from what you've said, you have no money saved for deposit or fees etc - then a purchase would appear to be a non-starter at present.

But that's not to say that after a few years of clearing the debt and satisfying judgments / defaults, there isn't hope!

Adsanders1977

i've saved around 7,000 also have access to another 10,000 (put away for me from a will, only to be used for something like this).

I was reading about 1st time buyers scheme and only 5% needed. I was looking at a place for 127,000

I guess the best thing to do is use the money to pay off the debt (the money I can) but I will still have the bad credit on my file for 5 years right ? I guess until then renting is my only option. I know it's my own fault but wish I could start looking to the future and having a place of my own.

ACG

What bad credit do you have and when did it stop?

Your not far off a 15% deposit there, there could be options depending on how bad and how recent it is.

Adsanders1977

i still have about 5 companies I pay. they all got passed on to debt agencies.

orignally halifax loan, account and credit card. I now pay a company called wescott. Another account & loan which was cahoot, now pay a company called apex. the last one a credit card now taken over my Iqor. all totaling 13,000

ACG

Its possibly unlikely - but it could be worth getting your vredit reports from all 3 agencies and then going to see a good broker. Depending on how these appear on your files there could be a chance.

thequant

Adsanders1977 wrote: »

i still have about 5 companies I pay. they all got passed on to debt agencies.

orignally halifax loan, account and credit card. I now pay a company called wescott. Another account & loan which was cahoot, now pay a company called apex. the last one a credit card now taken over my Iqor. all totaling 13,000

Wescott & apex are quite notorious debt collecting agencies, they will have well and truly trashed your credit record.

Your options are.

1) Find out when your defaults went on your credit record, they expire after 6 years. If you are near the end of this, it might be worth waiting for them to disappear. The fact you are still paying them has no bearing on your credit worthiness when they disappear.

2) Satisfy the debts, i.e. pay it off, it will still leave the marker on your credit record however it will say satisfied and some lenders will ignore these if a couple of years have passed. However if you are within the last 2 years of them going, don't do this as they will go on their own accord and you might aswell keep the money for the deposit.

lindsaygalaxy

When are the defaults from as they will fall off 6 years from the default date. You need to look at your 3 credit files.

Adsanders1977

thanks for all the replies. I do appreciate it.

One more question for now. What is the best way to look at my credit file. ?

ACG

equifax, experian and callcredit - your best getting all 3 as sometimes they show different things.

Adsanders1977

Thanks ACG