Advice please

andybroughton

Hi

Ive seen a property I am rather interested in. It is up for auction on the 18th September at book price 80-85k.

I am currently in a DMP with Stepchange which I owe 9000 with. My credit rating is shot to pieces as I am making reduced payments - I wouldnt get a high street mortgage.

I have learned my lesson from past mistakes.

I have no capital for a deposit etc, and would need a 100% deposit for the property. Ideally would like to pay the debts off also.

I may be able to get about 8k in the next month or so (mum died waiting on probate) - I may not get it as my "dad" has gone against mums wishes so not definite.

Q1. Is there any lenders willing to do bad credit 100% mortgages? - I earn 22k and my fiance about 7k (her rating is awful too)
Q2. Do I forget this house, pay my debts off and rebuild file?

Cheers

Andy

opinions4u

1. No
2. Yes

R_P_W

andybroughton wrote: »

Hi

Ive seen a property I am rather interested in. It is up for auction on the 18th September at book price 80-85k.

I am currently in a DMP with Stepchange which I owe 9000 with. My credit rating is shot to pieces as I am making reduced payments - I wouldnt get a high street mortgage.

I have learned my lesson from past mistakes.

I have no capital for a deposit etc, and would need a 100% deposit for the property. Ideally would like to pay the debts off also.

I may be able to get about 8k in the next month or so (mum died waiting on probate) - I may not get it as my "dad" has gone against mums wishes so not definite.

Q1. Is there any lenders willing to do bad credit 100% mortgages? - I earn 22k and my fiance about 7k (her rating is awful too)
Q2. Do I forget this house, pay my debts off and rebuild file?

Cheers

Andy

Sorry but no chance.

Move on and focus on paying off the debt and then saving around 10k

ACG

Just to give you an idea, im trying to do a mortgage for someone in a DMP at the minute. The best i can get is about 65% LTV AND the DMP being paid off in full (Rate wise, we are talking 6-7%).

I might also be able to get one at closer to 75% due to when the DMP was started (over 3 years ago) but that is at the underwriters discretion (Rate wise for this would be closer to 5%).

So to answer your question, 100% is hard enough for someone with no credit issues (ie you would need a guarantor and perfect credit).

Work to pay off the DMP asap, if you pay it off early it looks better to any potential lenders.

kingstreet

To buy at auction, you need 10% deposit on the day. Prior to the auction, you must have a mortgage offer in your hand and that means paying the fees for a valuation and having a solicitor check the legal stuff.

Auction buying is a tricky business for the inexperienced and especially for those with no cash.

Thrugelmir

Channel all your efforts into rebuilding your credit file as soon as you can.

_Andy_

As per above, the bad news is you don't have any options at the moment.

So to your question #2 the answer is 'yes'. Head down, pay the debt off then start saving - house purchase can still happen but will be a long term goal.

Miss_Marple_2

Hi Andy - I don't know anything, really, just going through the mortgage application process myself at the moment, but I did want to say that I am finding it difficult and I have an LTV of 45%.

My adverse credit is against me. I have a default that is 4 years old (satisfied over 3 years ago) and other late payments just over 2 years ago. Hopefully I now have someone who will accept me, but it has not been easy and my mortgage broker has worked hard. I have paid off all my debts.

My advice, for what it is worth, is to use your inheritance to pay off your debts and then start saving your deposit. By the time you have saved your deposit, your adverse credit will be a way behind you. Also, get your credit reports and make sure that all is correct on that, and then keep watching it as you save to make sure that you will be going into a mortgage application with as much good credit history as possible.

Also - don't torture yourself by looking at houses. Start looking as you come into a position to offer / bid on one. Put your efforts into saving and you will soon be getting the house you want. Good Luck.


(apologies for preaching the same message on lots of threads, but I just wish 3 years ago I had paid attention to my credit report, but I never thought I would be in a position to buy a house, so I didn't bother about even looking, and now I can see that there are a few small errors on there that make my already adverse credit appear worse - makes me mad with myself that I did not plan ahead :mad:)