Mortgage advice needed - bad credit

alabama1985

Hi all:j

I am new to this site and after some mortgage advice.

Myself and my partner and really keen to get a mortgage and avoid the high rent we are currently paying. Our problem is bad credit, despite never missing a rent payment in the 2 years we've lived together (therefore knowing we can afford a monthly mortgage which would cost lower) I just checked my credit score and it is 300 out ot 1000 (inc 2 ccj's) I understand this is terrible and my own fault from bad decisions in the past but I am mostly on top of things nowadays. We are awaiting the results from my partners (they needed to send him a secure keything in the post so we couldn't access his file).

Can anyone tell me whether a mortgage is AT ALL in our sights? I would say my partners score would be very much the same as mine.

We have a deposit of around £10k and both have permanent jobs of a combined income of £40k per year.

We just wondered if it's something we should pursue or forget about?

thanks in advance.

Alabama

HappyMJ

A mortgage is within your sights once the CCJ's fall off your credit record which will be 6 years after the date which they were issued. Wait the time out keep your credit clear, use credit cards and pay them off in full to prove to a credit provider you can not use every penny of available credit and can pay it off on time. Get on the electoral register, don't move too often and save like anything....then you'll get your mortgage without a problem. Rent somewhere cheaper and save more.

Thrugelmir

Don't give up. Even if you have to rent for a few years longer. Home ownership provides security that's worth every penny.

alabama1985

thanks guys, unfortunately the CCJ's are relatively new,they got sent to a previous address and by time they caught up with me at my new address was too late to take action against them.

My parents have offered to be guarentor, would this make any difference? they are 58 and 62.

thanks anyway

ACG

How much are the CCJs for?
How recent are they?
How much does £10k represent as a percentage?

Guarantors are to overcome a shortfall of income, not bad credit so that is a no go.

alabama1985

ACG wrote: »

How much are the CCJs for?
How recent are they?
How much does £10k represent as a percentage?

Guarantors are to overcome a shortfall of income, not bad credit so that is a no go.

CCJ's which I got in June 2013 are for approx £1500 total, which I am paying back £40 a month.

the 10k represents about 8%.

thanks!

ACG

As things stands your not going to get a mortgage unless you can up your deposit to 25%.
Once the CCJs are 2 years old you might get away with 15% (as things currently stand).

However, the CCJs would need to be cleared in full before you made any application, maybe even for a few months before.

alabama1985

ok, thank you for the advice!

Thrugelmir

alabama1985 wrote: »

CCJ's which I got in June 2013 are for approx £1500 total, which I am paying back £40 a month.

the 10k represents about 8%.

thanks!

If the savings are yours clear the debt asap.