Mortgage with poor credit

beckstas-money

Hi

Looking for recommendations. I have a 'poor' Experian credit score which has slowly been increasing as I have been doing the necessary fixers. I really want to buy my council flat which is valued at £233k. I will be entitled to the full £107k discount.

Can anyone recommend a mortgage broker that will help me to secure a mortgage with such credit rating? I know waiting will be better however, would like to do it sooner rather than later as I would like to change my job next year which I have been doing for 3.5 years. My current salary is £31k p/a. After current rent and bills are paid I have a disposal income of £860.

I have contacted London and Country who advised I need a speciality mortgage as there are not many mortgage brokers who offer mortgages on Right to Buy with flats.

Has anyone secured one them self in a similar situation?

BorisThomson

A poor rating means nothing, what are the issues that your credit file shows?

With a disposable income of £860, presumably you have a decent amount of savings?

beckstas-money

Four small defaults. Last one being 10 months ago. All the other are 4ish years ago.

I have £3k saved. Wanted to use my £100k+ discount as a deposit.

That £800+ has only become regular since getting rid of HP car in October last year and clearing other debts with cash from car.

Cakeguts

The advice on here is usually not to buy council flats because of the surprise repair bills that can cost £1000s. As a secure council tenant you don't pay for any repairs to the building your flat is in but as a leaseholder you will get a bill. Some of the bills are huge and you will have to pay it.

beckstas-money

I’ve thought about not buying then come to the conclusion that it would be crazy to throw a 100k away. I will struggle to raise a 15% deposit on a london property, i’ve looked and can’t find anything suitable at less than £350k.

Only need to stay here for 5 years then the plan is to rent it. A few neighbours are renting thiers for £1400p/m

I’ve contacted my local housing office, the annual service charge is £2700 which is manageable.

Cakeguts

beckstas-money wrote: »

I’ve thought about not buying then come to the conclusion that it would be crazy to throw a 100k away. I will struggle to raise a 15% deposit on a london property, i’ve looked and can’t find anything suitable at less than £350k.

Only need to stay here for 5 years then the plan is to rent it. A few neighbours are renting thiers for £1400p/m

I’ve contacted my local housing office, the annual service charge is £2700 which is manageable.

It isn't the service charge that is the problem it is the bills for maintenance to the fabric of the building. What are you going to do if you get a bill for £40,000 as your share of the cost?

HampshireH

How high a bill will be will be largely dependant on how many flats work is split between. As above could be 10s or thousand. When was the roof, windows, lift etc all last replaced/repaired

You could see it as throwing 100k away or spending 100k+ unnecessarily.

Where will you go in a few years time when you rent it out? Could you afford to buy again if you did have a large expense? Worth considering .

Goodluck if you go ahead with it.