Possible to get a mortgage?

greenbrucelee

My credit rating has been crap for the last 20 years.

I have an IVA and it will end March 2017

I will be 40 years old

I currently earn 17290 before tax

Haven't had a pay rise since 2007 and has my wages cut by 22% which is why I got into debt.

Is there any chance I would be able to get a mortgage at that age and with my credit rating?

ACG

Difficult to say as its nearly 3 years off, but as things stand now - if you had a 15-20% deposit (and the IVA had been cleared) you could get a mortgage yes.

greenbrucelee

Thanks for that.

It would take me a long time to get that sort of cash for a deposit, what are your thoughts on the buy to let scheme and would I be eligible for it?

kingstreet

Buy to let?

You'd need an even bigger deposit. Why would buy to let help you if you want somewhere to live?

greenbrucelee

sorry I meant the scheme where the government part owns the house with you.

ACG

Help to buy?

I dont do the equity loan version of help to buy but I think you may struggle to get one of those - assuming its still going in 3 years.

greenbrucelee

So it looks like my best bet would be to rent?

ACG

Could you not move back home, pay off your debts sooner and save up?

If you cant afford to save up and cant move back home or in with family then I think your only option is to rent.

greenbrucelee

I am living at home with my Mother but I would like to get a life at some point which I don't have now. Basically I pay £243 a month into my IVA and payout 471.49 per month into my keep and other bills I have which only leaves me about £400 a month which £40 a week is for travelling to work.

I live 20 miles away from work and where I live there is very limited transport which doesn't run or coincide with my shift work.

I would like to live closer to my work and be able to live.

Once my IVA is done I am going to be around £400 per month better of as some of the bills I have at the moment will also be finished. I am planning on saving atleast £300 per month for one year after my IVA is done so I have some money behind me before I move.

ACG

Of your £400 a month can you put some of that in a savings pot. When you have say £4k (theoretically you could do that in 10 months), could you offer them a lump sum to see if they will allow it as a final settlement figure?

By the start of next summer you could have your IVA paid off.

greenbrucelee

I can only do that £400 when the IVA and my other bills are finished, if I could do it now I would be.

The £400 I have now per month like I said £40 a week goes on petrol travelling, the £70 I have left goes on food and generally trying to live a bit, and by that I don't mean going to the pub or anything I haven't been to a pub or night out since 2006