Awful credit, low mortgage, any chance??

Aerobell

Hi guys!

So, for reasons that are totally my fault I have really bad credit rating.... it's in the poor category which stem from uni days but my defaults and CCJs won't drop off for another year or two. (ccj's for under 2k due to a failed business and all paid off)

I'm really keen to get on the housing ladder due to some recent family tragedies that having an accessible home to stay if illnesses take over for loved ones is key (long story!)

Anywho, I was thinking of buying in a cheap area, so a house costing £45000, my income is about 22,000. My issues are my credit and the fact that I work on a 0 hour contract. Now I've been working with this company for over a year and it's only a zero hr contract to cover them incase they don't get clients but it's a massive company, reliable and many people have been working there full time like me for 3 plus years.

I have about £10k deposit and know that a highstreet lender won't touch me but maybe a broker would? I was thinking of getting this as a BTL as I personally wouldn't be living there.

I know many will want to rip me apart for even wanting to get a mortgage with my history but I've done that part to myself already so maybe we could skip that bit?

Looking forward to any advice possible.

Foolishone

Yes. Definitely see a broker. With £10,000 against a property valued at £45,000 you are putting up a 20% deposit which lessens the risk for the lender.

A broker will know the market and find a lender that is willing to lend at possibly higher interest rates.

Good luck!

ACG

I think the property value is going to knock out a lot of lenders - especially some of the adverse type lenders.

The same goes for the 0 hours contract - although that probably wont be so much of an issue as you will have a P60 evidencing your annual income soon enough.

Speak to a broker, but I think you would have more of a chance with a £75-100k property.

Those defaults/ccjs are quite old so I think there could be options possibly high street rates subject to everything else.

Sit down with a broker and discuss the options at £45-50k and above £75k.

Aerobell

Wow, thanks so much for the replies!

I was going for a low priced property as I thought that would help but it totally makes sense to go for around 80k.

I totally forgot about the p60 which will be really handy as in actual fact my pre tax income is more like 30k but that's because i do loads of overtime.

The rates don't bother me as I see that as a sanction for mismanaging my money before, I just want the chance to set things right!

I'm properly going to try and save a bit more in that case as I've heard that 25% deposit is where lenders become more lenient so would be aiming for as near to 20k as possible which will we hard but not impossible.

Ok fab, any other constructive thoughts are welcome !

Thrugelmir

Take any overtime going and keep building that deposit. As it is possible to move forward and leave your history behind.