Trying to fix bad credit because I'm DESPERATE for a mortgage

DpchMd

Judgmental blah blah blah

Mattygroves2

HomeSaver wrote: »

Thank you for this reply

I have family who are willing to help... however my aim is to try and get properly on to the property ladder. It is financially viable to do it... it's just a case of how to do it.


I had been considering seeing if there was a route for family to buy the property and then I buy percentage shares in it on an annual basis until I am 100% owner and they have been repaid. By doing this I would avoid the impact my own credit history would have on a perspective purchase. Either that or I could speed it up in a few years time by taking a mortgage once my credit rating has improved... but I don't know enough about how to buy shares of houses without mortgages etc???

I don't know if this is anything some one knows anything about at all?

If your family can buy cash then yes you can buy a proportion each year and complete the relevant Land Registry forms. You might want to see a solicitor for the first purchase to make sure the wording for your share is correct as you'd need to register it as tenants in common and have a Trust Deed done. Subsequently you might be able to DIY but if I was the family member I'd want it done legally ie pay a solicitor each year.

Every time you transfer part to you the family member will have to at least think about any Capital Gains Tax that would be due . There probably wouldn't be any but they may have gains elsewhere using up their annual allowance.

Any rent you pay to your family in the meantime is taxable in their hands.

The simplest way is to wait a couple of years building up your own deposit and paying everything on time and in full.

Thrugelmir

HomeSaver wrote: »

I am disappointed at the judgemental nature of the above quote...

There's nothing judgemental. It's the fact of life.

Contrary to a commonly held perception. Opening new credit lines after having financial difficulties isn't alife changer. The reason behind them doesn't matter. As debt is debt which ever way it's cut, diced and spliced. The healer is time.

Lenders are looking for stability and responsibility in the management of personal financial affairs. As simple as that.

Credit after debt is akin to a teetotaller having an alcoholic drink.

MJP43

Debt isn't mis-management of credit.

Not paying debt back in time is mis-management of credit

HomeSaver

DpchMd wrote: »

Judgmental blah blah blah

Wow the supportiveness in this thread is overwhelming!!!! :mad:

HomeSaver

Mattygroves2 wrote: »

If your family can buy cash then yes you can buy a proportion each year and complete the relevant Land Registry forms. You might want to see a solicitor for the first purchase to make sure the wording for your share is correct as you'd need to register it as tenants in common and have a Trust Deed done. Subsequently you might be able to DIY but if I was the family member I'd want it done legally ie pay a solicitor each year.

Every time you transfer part to you the family member will have to at least think about any Capital Gains Tax that would be due . There probably wouldn't be any but they may have gains elsewhere using up their annual allowance.

Any rent you pay to your family in the meantime is taxable in their hands.

The simplest way is to wait a couple of years building up your own deposit and paying everything on time and in full.

^ This is the kind of super helpful info I have been looking for! THANK YOU :j


Do you know, is it only possible to do it this way if they are a cash buyer... Or is it possible if they have a mortgage?

I'm really pleased for the helpful advice you are giving me...

I appreciate it would be simpler if I was able to wait a couple of years but unfortunately that is proving very difficult to do. I am having to move for health reasons and there is a shortage of privately rented properties that suit my requirements.

HomeSaver

Thrugelmir wrote: »

There's nothing judgemental. It's the fact of life.

Contrary to a commonly held perception. Opening new credit lines after having financial difficulties isn't alife changer. The reason behind them doesn't matter. As debt is debt which ever way it's cut, diced and spliced. The healer is time.

Lenders are looking for stability and responsibility in the management of personal financial affairs. As simple as that.

Credit after debt is akin to a teetotaller having an alcoholic drink.

I am aware of this I was just annoyed at the assumption that I was just being whimsical thinking "hey, lets get a credit rebuild card... job done!"

I do manage my finances well... please do not assume that I don't. From a lenders situation debt is debt no matter which way it is cut... yes I agree... but there is a stark difference when you are communicating with someone on a forum who is asking for help/advice... that was really what I was getting at....

HomeSaver

MJP43 wrote: »

Debt isn't mis-management of credit.

Not paying debt back in time is mis-management of credit

Absolutely! Though mine was more of being physically unable to manage said credit over the period required when I was ill... not just avoiding it or making poor decisions sadly

DpchMd

I honestly didn't see a single judgemental comment in this thread. You asked some questions and people responded honestly and politely. I can only assume you didn't like the responses.

I apologise if I have overlooked some comments.

All the best with your quest for a mortgage.