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

Petriix

The way to do it is by extracting equity from another property. People often remortgage one property so that they can buy the derelict one outright. That way the lender's money is secured against a reliable asset.

There are mortgage products available for self-build properties so it may be worth speaking to a broker to see if anything can be done. However, you should probably build up your credit history and your savings for a year or two.

With a £50k deposit and a £150k mortgage you will have much more choice of property. Maybe then look for something mortgageable but in need of modernisation. That way you can add lots of value if you can do the work yourself.

chilswelluk

Petriix said:

you should probably build up your credit history.

The strange thing is, it seems my credit history may not be so bad after all.  I signed up to Experian some time ago and just checked and they said I have a credit score of 999 (which they say is excellent), however I have not paid for the full report.  Not sure how I have such a high credit score, being as though I don't use credit cards, car finance, personal loans etc.  But then come to think of it, I pay my car insurance in instalments, so I guess that counts as credit.

chilswelluk

Petriix said:

With a £50k deposit and a £150k mortgage you will have much more choice of property. 

How do these people in their twenties manage to buy property?  I have seen some of these property programs where young people (only a couple of years out of university) who are earning less than me and have less in savings than me, have secured mortgages.  I only want to borrow about 70k and can put 30k down.  It's not as though I am asking for much in terms of money borrowed to salary ratio.

theoretica

There are self build mortgages if you can describe this as a building plot rather than a house - I looked at them once and then quite rapidly decided they weren't practicable.

SpiderLegs

chilswelluk said:

Petriix said:

With a £50k deposit and a £150k mortgage you will have much more choice of property. 

How do these people in their twenties manage to buy property?  I have seen some of these property programs where young people (only a couple of years out of university) who are earning less than me and have less in savings than me, have secured mortgages.  I only want to borrow about 70k and can put 30k down.  It's not as though I am asking for much in terms of money borrowed to salary ratio.

It doesn’t matter how old or how much deposit people have if the bank will not lend on the property.
find a different property.

chilswelluk

Does anyone know anything about Agricultural Mortgages?  If the property comes with land, or was even part of an old derelict farm, I wonder if that is an avenue to pursue? 

[Deleted User]

chilswelluk said:

Petriix said:

you should probably build up your credit history.

The strange thing is, it seems my credit history may not be so bad after all.  I signed up to Experian some time ago and just checked and they said I have a credit score of 999 (which they say is excellent), however I have not paid for the full report.  Not sure how I have such a high credit score, being as though I don't use credit cards, car finance, personal loans etc.  But then come to think of it, I pay my car insurance in instalments, so I guess that counts as credit.

The score is made up and not a factor in lending.  Everyone with virtually no credit history has a 999 score.

chilswelluk

Petriix said:

The way to do it is by extracting equity from another property. People often remortgage one property so that they can buy the derelict one outright. That way the lender's money is secured against a reliable asset.

But that's not an option in my case as I don't own another property.  Even if I did buy another property, it may be years before I build up any equity in that property.  In these uncertain times with COVID etc, I could even find myself in negative equity.  It's not a solution for my current situation. 

chilswelluk

Deleted_User said:

The score is made up and not a factor in lending.  Everyone with virtually no credit history has a 999 score.

Do the monthly instalments on car insurance not count as credit for credit history purposes?  Also if I were to get a credit card and buy £5 of petrol on a credit card once a month, would that be enough to build up a credit history for mortgage lenders?

[Deleted User]

You need to check your three files to see what appears.

Use of a credit card, clearing in full each month, is the easiest way of building history.