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Buying a house with adverse credit

CarlaYilmaz
Posts: 3 Newbie
Hello, I’m new here and I’m so fed up, to cut a long story short, when I was 18 I got myself into debt with my then boyfriend, we rented a flat and everything got out of control and he began seeing someone else and we split up, because I was an idiot everything was in my name (he was foreign and couldn’t seem to get credit because he wasn’t on the electrol role etc.)
I turned to Gregory Pennington who negotiated deals and froze interest but have recently taken it away from them and am doing it all myself. I pay a total of £42.00 per month between four creditors and have appx. £8000.00 outstanding. I have not had any credit since then, just been paying back the amounts I can afford but I never wanted pay massive amounts because I wasn’t earning that much, I didn’t want to not be able to have a life and be sat at home wasting more of my young years due to my ex. I barely notice the payments going out, it was under control and I have been happy that way, I just hoped that when It came to getting a mortgage I would be able to put it in it or just continue paying it alongside.
I am now 25 married and desperate to get a mortgage in a year or so with my husband and eventually start a family, we both work and between us earn £30,000 per year I have learnt from my past and never got involved in any credit or loans since I was 18 and my husband has one credit card that we only use in emergencies and pay straight off before we even receive the bill.
We currently rent a flat and manage all the bills fine, we are learning to drive and with the rest want to save as much as possible for a deposit, if we pay off the debts with the rest it will take years and I really want to save for a deposit on a house so that we can buy asap, i am happy to pay my £42.00 a month repayments for as long as it takes because I barely notice it, if we find ourselves in a position to pay one off then we will but I’m not getting any younger I want have children, I wish I could just incorporate the debt in a mortgage or just pay it off as I am doing but how will I get a mortgage with it still outstanding
We went to the HSBC and my husband asked them for a ‘rough’ mortgage quote, I wished he hadn’t asked because I walked out in tears, the women was really patronising about my debt and said that because I had used a management company to lower the payments then I would definitely have adverse credit (which I do know and am aware that a high street bank probably wouldn’t lend) (although I have recently passed two credit checks, one to get our rented flat and one for a bank account). I have battled against these creditors on and off for seven years and feel that I am controlling it all well these days, I just didn’t need to be spoken to like that, this women made me feel so deflated and sad, she made me feel like the scum of the earth, she told me all about a product and then said that ‘they wouldn’t touch me though’
I feel gutted, all I want to do is buy a house and not use government’s money to live.
I have written to experien for my report but inthe meantime any advice would be much appreciated.
I turned to Gregory Pennington who negotiated deals and froze interest but have recently taken it away from them and am doing it all myself. I pay a total of £42.00 per month between four creditors and have appx. £8000.00 outstanding. I have not had any credit since then, just been paying back the amounts I can afford but I never wanted pay massive amounts because I wasn’t earning that much, I didn’t want to not be able to have a life and be sat at home wasting more of my young years due to my ex. I barely notice the payments going out, it was under control and I have been happy that way, I just hoped that when It came to getting a mortgage I would be able to put it in it or just continue paying it alongside.
I am now 25 married and desperate to get a mortgage in a year or so with my husband and eventually start a family, we both work and between us earn £30,000 per year I have learnt from my past and never got involved in any credit or loans since I was 18 and my husband has one credit card that we only use in emergencies and pay straight off before we even receive the bill.
We currently rent a flat and manage all the bills fine, we are learning to drive and with the rest want to save as much as possible for a deposit, if we pay off the debts with the rest it will take years and I really want to save for a deposit on a house so that we can buy asap, i am happy to pay my £42.00 a month repayments for as long as it takes because I barely notice it, if we find ourselves in a position to pay one off then we will but I’m not getting any younger I want have children, I wish I could just incorporate the debt in a mortgage or just pay it off as I am doing but how will I get a mortgage with it still outstanding
We went to the HSBC and my husband asked them for a ‘rough’ mortgage quote, I wished he hadn’t asked because I walked out in tears, the women was really patronising about my debt and said that because I had used a management company to lower the payments then I would definitely have adverse credit (which I do know and am aware that a high street bank probably wouldn’t lend) (although I have recently passed two credit checks, one to get our rented flat and one for a bank account). I have battled against these creditors on and off for seven years and feel that I am controlling it all well these days, I just didn’t need to be spoken to like that, this women made me feel so deflated and sad, she made me feel like the scum of the earth, she told me all about a product and then said that ‘they wouldn’t touch me though’
I feel gutted, all I want to do is buy a house and not use government’s money to live.
I have written to experien for my report but inthe meantime any advice would be much appreciated.

0
Comments
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I was with Gregory Pennington myself about 10 years ago, and I did what you did and took it away from them and sorted everything out myself. In 2001 I decided to buy my first house, and I was still paying creditors, when I found the house I am in now, the estate agents arranged for a mortgage broker to deal with everything for me, I explained everything to him and he got me a mortgage with Abbey, all I had to do was write a letter explaining to them how I got myself into such a mess financially, then I got a letter offering me a mortgage.
By the way, I too went to HSBC at the time, and they were more or less the same with me because I had a DMP in the past, so I wouldn't worry. I am sure someone with better advice then me will come along, but as I said, I was in the same situation myself, so I know what it is like.0 -
Can I ask why you are so "desperate to get a mortgage"?poppy100
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because i am currently paying rent and i feel like im feathering somone elses nest when i could be invesitng in my future.0
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Well I guess you ought to first look at what you can afford to pay per month (repayment mortgages are advisable unless you have some way of repaying the capital of an Interest only mortgage), which will give you a very good idea of what you can afford. You should work out what this payment would be should interest rates rise to 12%. There's quite a few calculators online that will help you work this out.
A £30k salary between you would mean you could "affordably" borrow around £90k to £105k... (Borrowing more than 3.5x salary is generably not advised).
Don't forget to work out monthly bills too:
Council Tax
Elec
Gas
Buildings insurance
Contents Insurance
Water
Food
Car (MOT, Tax, Insurance, Petrol)
Loan Payment
There's no reason why you shouldn't be able to get a mortgage, but borrow sensibly!!
ps - you should maybe look at increasing the debt payment, because even a 0% interest loan of £8000 would take you over 15 years to pay at the rate you're paying, so you could be paying it of into your retirement!!Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0
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