Can I get a mortgage?

cjbaps

Hi, I am currently renting a property at £450 per month, and would very much like to buy my own place, however, I am currently using a DMP with CCCS at the moment, and have a few defaults against me. I have never had a CCJ - default is the worst I have had. I once had a mortgage, and never missed a payment on this. I guess I will be viewed as a first time buyer again though.

I don't currently have any savings, however, I will finish paying off a few debts this year which I didn't put through CCCS (as they are manageable and were interest free anyway), so will be in a better position financially in a few months.

Is a mortgage approved the same was as other loans? Or is it different as it secured on property!? Would anyone touch me with a barge pole????

Cheers!

meanmachine_2

My advice would be to wait until you have at least 10% of any prospective property to put down as a deposit.

Taking out a 100% mortgage in the current climate (with the housing market faltering) is complete madness if you ask me. You could buy a property and find yourself in negative equity the minute you step over the threshold.

Try to cut down on expenses, save a few hundred quid each month - put it into a high interest internet account then look again in 12 months' time. House prices won't be shooting up 30% this year or any time soon, so don't worry.

dougk_2

MeanMachine is correct - house won't rise by 30% this year (in fact i don't think they have ever risen that much in a year). It is not possible to say what will happen to house prices . I think a small rise of 2 to 5%.... but Mean Machine thinks different.

Your priority is to clear all the debts and build up a good credit rating. You need to do this first before applying for mortgages so as to get the rest deals you can.

The risk of negative equity is always there, you cannot predict the future and the past does not always provide a "clear picture" of what happened. If you are buying a house to live in and its for a long term it doesn't really matter when you buy.