Getting a mortgage for uninhabitable property with no work or credit history?

chilswelluk

I am 40 years of age (single with no children) and am looking to buy my first property, however I fear I have little chance in getting a mortgage.  I would be interested to hear peoples views on what they think the best way forward would be.

1) I went to University when I was 18, did a degree and then a masters afterwards.  I then worked for a couple of years, before giving up work to care for a partner.  I cared for my partner full time, until my partner passed away 3 years ago.  I have been unemployed for the last 3 years, but have now found a full time job starting next month.

2) In addition to having no work history, I have no recent record of paying rent and have lived in a family members house for free who lives abroad.  I will be moving location to start my new job next month, so will have rent to pay then.

3) I don't have much of a credit history (although Experian gives me a score of 999). I don't have any credit cards, apart from paypal credit.  I have only used paypal credit on a handful of occasions and paid the balance in full within a month.  I have never had any personal loans, car finance etc.  I tend to live very cheaply, driving a 20 year old car and only really spend money on food and electricity.

3) I have found a property that I want to buy, which is uninhabitable.  When I say uninhabitable, I mean a tree growing in the property!  My plan would be to live on the land in a caravan and renovate the house, as and when I have money (I am prepared to do this over many years).  I would do all the renovation myself.  I am confident doing this and have helped a few friends with similar renovations over the years. 

4) My full time job starting next month will pay 38k per year, and I have around 30k of savings.  The derelict property that I want to purchase is 100k, thus meaning I want to borrow 70k.

Do people think my circumstances would make it very difficult / impossible to get a mortgage?  What is the best way forward with this? 

[Deleted User]

Forget this property.  No one is getting a mortgage for it.

You'll also need to increase your savings if you want to put down a 30k deposit on anything, as there are other costs involved in home buying.

Get a couple of years employment behind you, build a credit history with a credit card or three and save hard.

chilswelluk

Deleted_User said:

Forget this property.  No one is getting a mortgage for it.

But I want to do a renovation.  It's something I enjoy doing and can get a much bigger property with land this way.  I have helped friends with similar renovations for houses that were left to them in a will.

Even if I save more money than the 30k I currently have, I still want to buy a similar property.

haras_n0sirrah

There is development finance but it is very expensive- not something to do it the renovation will take years 

davidmcn

chilswelluk said:

Deleted_User said:

Forget this property.  No one is getting a mortgage for it.

I have helped friends with similar renovations for houses that were left to them in a will.

Ah, I was about to ask whether you had asked them how they financed these projects...

chilswelluk

haras_n0sirrah said:

There is development finance but it is very expensive- not something to do it the renovation will take years 

So really there are no viable options?  Do most people approaching this just have the cash to buy outright?  If thats the case it looks like I will be saving a long time, by which time the property will have gone up in value again.  It's kind of like swimming to catch a boat that has already set sail.

clive0510

chilswelluk said:

I am 40 years of age (single with no children) and am looking to buy my first property, however I fear I have little chance in getting a mortgage.  I would be interested to hear peoples views on what they think the best way forward would be.

1) I went to University when I was 18, did a degree and then a masters afterwards.  I then worked for a couple of years, before giving up work to care for a partner.  I cared for my partner full time, until my partner passed away 3 years ago.  I have been unemployed for the last 3 years, but have now found a full time job starting next month.

2) In addition to having no work history, I have no recent record of paying rent and have lived in a family members house for free who lives abroad.  I will be moving location to start my new job next month, so will have rent to pay then.

3) I don't have much of a credit history. I don't have any credit cards, apart from paypal credit.  I have only used paypal credit on a handful of occasions and paid the balance in full within a month.  I have never had any personal loans, car finance etc.  I tend to live very cheaply, driving a 20 year old car and only really spend money on food and electricity.

3) I have found a property that I want to buy, which is uninhabitable.  When I say uninhabitable, I mean a tree growing in the property!  My plan would be to live on the land in a caravan and renovate the house, as and when I have money (I am prepared to do this over many years).  I would do all the renovation myself.  I am confident doing this and have helped a few friends with similar renovations over the years. 

4) My full time job starting next month will pay 38k per year, and I have around 30k of savings.  The derelict property that I want to purchase is 100k, thus meaning I want to borrow 70k.

Do people think my circumstances would make it very difficult / impossible to get a mortgage?  What is the best way forward with this? 

Well when we bought this place it was in a similar state to the one you describe. but the difference is there was two of us of course, and we were younger - mid 20s. but even so it was a real issue getting a mortgage on a place that was completely uninhabitable. 
I think what you are suggesting is unfortunately a non runner.

[Deleted User]

A house like the one your describe is a cash only purchase.

chilswelluk

clive0510 said:

Well when we bought this place it was in a similar state to the one you describe. but the difference is there was two of us of course, and we were younger - mid 20s. but even so it was a real issue getting a mortgage on a place that was completely uninhabitable. 

How did you manage to get a mortgage on it?  Or did you just pay cash?

chilswelluk

Deleted_User said:

A house like the one your describe is a cash only purchase.

So even if I save 50k or 60k is it still a non starter?  How could somebody on a salary of 38k realistically fund such a purchase?  Is it a case of just saving hard for 10 years until I have all of the cash (assuming it does not go up in value too much)?

clive0510

we did pay cash with the help of a large personal loan from alliance & leicester . we told them the money was home improvements. between the two of us with help from parents and money we both had in savings,we could of bought the place outright, but we knew we needed that money to fund the renevation work. new doors n windows, complete new heating system etc. did as much of it myself as I could. we lived on a mobile home park while we were doing it. then when we moved out the mobile home and sold it. with the money from that we were able to pay back some of the people we borrowed from. it was hard but we did it.