Some advice please, 1st timer

progolf1803

Hi all,

After some advice, I live in Bristol and have got £40,000 and want to get myself on the ladder.

I am full time employed earning £16,000 PA but I have just come out of recent dept problem, I was in dept to payday loans and an overdraft adding up to around £4,000 (this dept is all cleared now as of last month)
I am with my girlfriend of 1 year and want to live together, she also earns £16,000 PA (she has never had credit)

I know that I will not get considered for a mortgage at the moment until my credit improves, but I didn't know what the next step is.

1. Could I get a shared ownership right now? Is this smart?

2. Could we apply for a joint mortgage?

3. Ways to improve my credit, I don't have any CCJs but a lot of defaults and I have one Vanquis credit card of 37.5% APR still open

Any replies would be great

Thanks

Foxy-Stoat_3

When was your last default, and how many do you have?

What value of property are you looking at?

Is the £40K yours or saved jointly?

Is investing the £40,000 cash for a year or two an option and renting until your credit/salary improves.

progolf1803

The last default would of been 2-3 months ago, I am not to sure how many defaults that I have?

Something in the region of £90,000, but there are a few shared ownerships that I have seen with about 40-50% equity at around £45,000

The £40,000 is all mine.

Investing for a year and waiting is something that I may have to do but I don't really want to rent, plus what is the best way to invest £40,000 now days?

MallyGirl

The first investment I would make would be to pay off any outstanding balance on a card with 37.5% APR.

Foxy-Stoat_3

With a 50% deposit on a £90,000 property your defaults may not be that much an issue, if you speak to a broker they will be able to advise how do-able this is. Best to get a few different credit reports and shove them under a brokers nose and go from there.

FTB with all the deposit from you, defaults not even 6 months old, relationship a year old, personally I would shove £20K in premium bonds, max out a few ISA's and rent somewhere reasonable for a year or so. If all is well in 12-24 months then pull all the money out and look for a place. That will give your defaults time to look old and your relationship time to grow. You may win a load on the premium bonds and not ever need a mortgage!

Not convinced on shared ownerships, but thats just me.

progolf1803

MallyGirl wrote: »

The first investment I would make would be to pay off any outstanding balance on a card with 37.5% APR.

It stands at £0 at the moment

progolf1803

Thanks for the replies Foxy,

the later may be what I will do, but I think I will get some credit reports see how good or bad they be then go to a broker and see what they say.

Why are you not convinced by shared ownership?

Foxy-Stoat_3

I just prefer to buy what I can afford in the area and type of property that I want. Rather not be tied into paying rent for a proportion of a house that I couldn't afford in the first place in an area that is available.

Fair play if you cannot afford to buy a standard mortgage and want to get on the ladder, they have their place I suppose.

Good luck, and if you win the million on the premium bonds, don't forget me !!!

LOL

Mokka

Sometimes shared ownership is a bit of a rip off as the rent you pay can be quite high, as high in fact as the rest of the mortgage would be on 100% ownership.
This is not always the case though- different landlord, different deal.