Advise needed on mortgage

wiggyuk

Hi all me and my partner currently live in a rented house but I would like to buy my own place, but unfortunitly we currently have bad credit Kayla (my partner) is 19 years old she first got into debt with Orange mobile (payed off now) then it was littlewoods (paid off now I think) and then we went behind on the councell tax she had a letter from them about attachment of earnings but nothing as been done yet so we just pay monthly as normal.

Then the is me I have a bad credit history I am 26 when I was in my teens I had problems with credit cards, then later on about 3 years ago I got about £800 - £1000 over drawn on two of my bank accounts those bank accounts are now closed and I now pay two different debt collection companies the outstanding balance is about £800 each.

So the question is will I be able to get a mortgage, I have no deposit to put down I currently earn about £20k per year and Kayla is on about £15k, is it possible to get a mortgage to buy a house and clear mu exsiting debts of at the same time ?

maninthestreet

If you can't handle a few thousand pounds of debt between the two of you, how are you going to handle the £100,000 plus of a mortgage debt?

wiggyuk

maninthestreet wrote: »

If you can't handle a few thousand pounds of debt between the two of you, how are you going to handle the £100,000 plus of a mortgage debt?

We can handle the debt we are paying it of monthly at the moment, but it is going to be at least another 12 months until we are all clear of the debts and I dont want to wait that long until I get a mortgage so I thought it may be a good idea to lend extra on the mortgage to pay the debts of then we have only one thing to pay each month.

wiggyuk

So does anyone have any advise for me

lynnexxxo

Hi

I'd suggest you carry on renting for a while yet, until you have paid off your debts and save like mad for a deposit, or at least enough to cover your fees.

Have you thought about how much you want to spend on a house, what are the house prices like in your area? How much do you think you could afford each month for mortgage payments?

If you absolutely can't wait to buy then I'd suggest finding an IFA - not a whole lot of mortgage companies will be willing to give a more than 100% mortgage to people with a less than prefect credit history.

wiggyuk

Whats a IFA

I would be looking for a house for about £120k

lynnexxxo

An independant finiancial advisor - someone who does not have a vested interest in selling you a specific mortgage with a specific company.

Although 120k might be the price of a 'normal house' in your area. I think on your current salaries, and with your credit rating you might struggle to get a mortgage for that much. Say you needed a mortgage for 125k. On a reasonable rate of (6%) that would cost your around £814 a month. Plus bills.

Is there nothing in your area around the 60-70k mark? Remember it'll be your first house - most of us don't really get everything we want in our first house.