Mortgage with very poor credit

emmy93

Me and my bf are looking to buy a house as currently living with parents. My credit rating is awful and I have a 3 year old active ccj. (Plus other debts I’m trying to clear) but Experian is 192/999. His is good. 

Will I be allowed on joint mortgage? 

It’s from old debts from using payday loans as a teen. 

Would we need a garuntor? Our budgets about 120k which we can afford as both on 25k ish a year. Would be looking at a 10k mortage

Or what are our chances renting 
thanks 

Slithery

emmy93 said:

Me and my bf are looking to buy a house as currently living with parents. My credit rating is awful and I have a 3 year old active ccj. (Plus other debts I’m trying to clear) but Experian is 192/999. His is good. 

Will I be allowed on joint mortgage? 

It’s from old debts from using payday loans as a teen. 

Would we need a garuntor? Our budgets about 120k which we can afford as both on 25k ish a year. Would be looking at a 10k mortage

Or what are our chances renting 
thanks 

You can't get a mortgage for only £10k.
Why not buy a £110k property outright for cash if you have it?

emmy93

Sorry I mean deposit ! 

emmy93

Slithery said:

You can't get a mortgage for only £10k.
Why not buy a £110k property outright for cash if you have it?

Sorry you’ve misread. I mean a budget of 120k. 10k deposit. 

emmy93

Can anyone offer me advice please 

Slithery

So you're looking at around 92% LTV.

Even before the banks tightened their lending you would have been very hard-pushed to get that level of borrowing with poor credit. Nowadays, not a chance I'm afraid.

hazyjo

Sadly chances are probably slim to none. I would clear debt and improve your credit record. Extremely unlikely to find a guarantor mortgage. They're not common. You'll also probably need a much bigger deposit.

Sorry! Maybe try really hard to clear/sort debts for a year?

Welcome to speak to a broker to see if there's anything they can find. Unlikely though it suspect.

emmy93

hazyjo said:

Sadly chances are probably slim to none. I would clear debt and improve your credit record. Extremely unlikely to find a guarantor mortgage. They're not common. You'll also probably need a much bigger deposit.

Sorry! Maybe try really hard to clear/sort debts for a year?

Welcome to speak to a broker to see if there's anything they can find. Unlikely though it suspect.

This would be a joint application 

emmy93

Slithery said:

So you're looking at around 92% LTV.

Even before the banks tightened their lending you would have been very hard-pushed to get that level of borrowing with poor credit. Nowadays, not a chance I'm afraid.

Slithery said:

So you're looking at around 92% LTV.

Even before the banks tightened their lending you would have been very hard-pushed to get that level of borrowing with poor credit. Nowadays, not a chance I'm afraid.

It would be a joint application 

Slithery

emmy93 said:

It would be a joint application 

We know, you said so in your first post. Unfortunately it doesn't change the advice you've been given so far.

hazyjo

Joint application means you are both equally responsible for paying. Not 50/50 (even if that's what you each pay towards it). They will probably deem you too high a risk to be a joint applicant. Like I said, maybe have a chat with a broker.