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Buying/Renting
CocoPop06
Posts: 8 Forumite
Hi
After some advice on buying/renting please - any help/advice appreciated as I'm very confused with what to do!!
Me and my boyfriend currently live with my parents and we really want to buy a house but not sure we will be accepted.
We had some silly debts a few years ago (Wonga/pounds to pocket loans - Stupid I know but all of which were paid on time so no arrears with them) We still have around £4000 in credit card debt between us which I will have cleared by the end of this year and I have a bank loan which will finish in August 2016. Both of our credit histories are "poor" but we do not have any late payments on our files, every single payment is made on time every month.
Our plan is to clear the debt this year while living with my parents, we can then either rent somewhere in Jan/Feb 2016 or stay living with them until the end of 2016 and apply to buy somewhere with an approx £10,000 deposit.
My question is, because of the debt we have had (which will all be paid off this year) would we be likely to get accepted for a mortgage, or any help to buy schemes etc in 18 months time when we want to buy or would we be best of renting for a few years, making our credit scores a bit healthier and then applying for a mortgage. I really want to get on the property ladder but scared that I have ruined my chances!
Thanks in advance
After some advice on buying/renting please - any help/advice appreciated as I'm very confused with what to do!!
Me and my boyfriend currently live with my parents and we really want to buy a house but not sure we will be accepted.
We had some silly debts a few years ago (Wonga/pounds to pocket loans - Stupid I know but all of which were paid on time so no arrears with them) We still have around £4000 in credit card debt between us which I will have cleared by the end of this year and I have a bank loan which will finish in August 2016. Both of our credit histories are "poor" but we do not have any late payments on our files, every single payment is made on time every month.
Our plan is to clear the debt this year while living with my parents, we can then either rent somewhere in Jan/Feb 2016 or stay living with them until the end of 2016 and apply to buy somewhere with an approx £10,000 deposit.
My question is, because of the debt we have had (which will all be paid off this year) would we be likely to get accepted for a mortgage, or any help to buy schemes etc in 18 months time when we want to buy or would we be best of renting for a few years, making our credit scores a bit healthier and then applying for a mortgage. I really want to get on the property ladder but scared that I have ruined my chances!
Thanks in advance
0
Comments
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If you are saying you have never defaulted on any of your debts, I don't see why you would necessarily have a problem from that point of view. How much you can borrow will come down to a number of variables though.0
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Not quite sure why your ratings are so low if you have not defaulted on any payments, but some mortgage lenders take a dim view of Payday loan companies (using them makes it look like you are desperate for credit and can't manage your wages properly). Time will heal your score assuming you also clear all of your outstanding credit. Make sure you are both on electoral roll too and that you have at least 6 months+ in your current employments, preferably longer.0
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try posting on the mortgage board.:beer:0
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