Can I get a mortgage?

urbanbushmonkey

Hi all,

I'm looking at finally taking that step into the big wide world and finally own my own home, however I realise it's not going to be easy.

When I was 18(2006) I took out a lot of credit. 2x Credit cards, 1x finance on a laptop, 1x phone contract, 1x mobile internet contract and I had an overdraft. After paying them all back for a while I ran into difficulty and they all ended up with debt collection agencies.

I have since paid everything back and have improved my credit to the point where I have been accepted for a new phone contract, and a new credit card (I pay both back every month without fail).

I'm looking at getting one of those 50% shared ownership homes as I figure that would be my best chance at getting onto the ladder.

My gross income is currently £18,000 but this will be jumping to £34,500 come next month.

I have around £6,000 saved for a deposit along with another £500 per month being added to it.

Where would be the best place to look for a mortgage on a £50,000 property that I'd actually stand a chance of getting?

Thanks.

davidqu

Hi

We all did stupid things when we were young, I was the same, I had store cards, credit cards, mobile phones which I defaulted on, I finally got my mortgage at the age of 26, I made sure I had settled all debts and waited 3-4 years before applying.

I think it helped as my misses has a great credit rating (she has too as she works in a bank) and we done a joint mortgage, we also put down a 50% deposit £35k which also helped our application I would have thought.

Reading your situation I think it might be hard for you to be accepted for a mortgage JUST NOW, but keep up the credit payments you have currently, never miss a payment and reassesss in 18 months, also it will give you greater time to save for a larger deposit and your salary will have increased. You'll look a lot more favourable when applying for a mortgage.

Good luck though

Annisele

I think you should first get hold of your credit files - should cost you £6 (three lots of £2). That'll show you what the damage is in terms of credit history.

Then I think you should take your credit files to see a broker - not one that works for an estate agent. Ask family /friends for recommendations.

The broker should be able to give you an idea of whether you'll be able to get a mortgage soon.

kingstreet

As Annisele says, it depends what's visible on your credit files now. As lenders use different CRAs, the only way to be sure is to order all three versions.