mortage debt helpppppppppp!

jay_mi

Hi everybody

Firstly I am only 20 nearly 21 and I don't have a clue about mortgages except I want one! I currently pay-with my partner £550 per month. We would like to get a mortgage of around £120,000 I am currently on £35,000 as a director of a building company and my boyfriend is on £15,000-we have one child aged 1.

Basically We could afford around £700 per month, but i am confused as to wether I would get a mortage Before i had this job (only been in it 4 months) I was on maternity leave and didnt have a regular income going into my bank everything was paid into my partners account which i am not named on. I have an account now but again my wage has been going into partners account aswe have all the bills going into this.

Before i met my dp i live with a lad and I struggled for money i got into late payments ect gas/ect and also council tax which Was sent to court for an attachment of earnings. I have never had this took of me as i have since made all the payment on my own accord. I also got into trouble when i was 18 as my bank let me go overdrawn by £300.00 (i didnt have an overdraft faciliy) so i stopped my wages going in and buried my head this caught up with me and I have recently started paying it off. I have no direct debits in my name i was refused a current account by natwest but have since had an abbey account(basic) i have no credit cards,store cards ect and no debts. My direct debits come out of my partners account, sky bt ohone/internet/water ect and have all been on time they still have my name on.

My partner has an excellent credit score. so i know i have gone on abit but i am scared to go for a mortgage to get turned down and dissapoint dp as he has such good credit i would feel i am hoilding him back.

dmg24

Do you have any CCJ's?

jay_mi

I dont think i have any ccj's -or is the council tax attachment of earnings a ccj? Like i said they just have my details and if i fail to make the payment they take it out themselves but this has never happened I make the final payment next month for this

maninthestreet

Is your position as director of a building company a self-employed position?
If not, you've done very well for yourself to be employed in such a position at the age of 20.

jay_mi

No it isnt self employed, yes i am really happy with my job and am on a good income(im 21 in march) thats why it will be a shame if my past history effects it

gizmo111

Do you have a deposit saved? And money set aside for the legal/moving fees etc. Have you worked out a budget for when you will move, there will be quite a few extras eg buildings insurance to pay.

TEDDYRUKSPIN

You credit report will be marked with all these colourful indicators of late payments. I suggest you to look at your credit report and see if any of these have settled on them.

Companies do not like touching people who have missed payments. It is considered high risk.

However, it does not stop you trying. You will now to go through the whole mortgage process in order to seek acceptance and approval.

Now, all of the above apply to you. Good advice from the above.

Although you do have bad credit, you can still seek a mortgage but expect a interest rate of 8% for worse case scenario.

To get a good rate, it is always beneficial to save 10%. Although many allow 5% deposit, the process goes through more screening for approval.

AliceBanned

I am in the same position in looking for first mortgage with some bad credit from the past, which does get in the way but won't prevent you getting a mortgage altogether. In my situation I have turned my debt problems around to a large extent but it is the past which is causing me problems. your situation sounds very similar. It is frustrating and unfortunate when this happens but as long as you are on the straight and narrow now and for the future it will resolve in a few years. I am not letting it stop me from buying now as I feel ready in other respects. I have used checkmyfile.com as it is an excellent site which provides all information lenders would have on you and your past, in an easy to use format with assistance available from their team if you don't understand anything. It costs a few pounds a month but I think it is well worth it to register with them, at least until you have arranged your mortgage. it is such a big step, you should be armed with all the information you can get.

Conrad

Jaymi, your situation is very common, I see this everyday.

The only pointers I can give are this;

1) Lenders like stability - try to avoid changing job or address whilst you save your deposit

2) Clearly you must both pay everything in full and on time. It is NEVER a Banks fault that payment collectins fail, it is always the individuals basic mistake not to keep plenty of money in thier account to allow for possible times when they have a lot going out

3) You MUST ensure you are both on the voters role - statistically you are something like 10 x more likely to experience future debt problems if you are'nt on the voters roll. Lenders consider this is probably a reflection of how responsible and organised people are / are'nt. Those that tend to follow rules and be organised, tend not ever to get into difficutly.

4) Make sure you both have some credit in place such that a computer credit score has something to measure you by. If you have no credit how can a coputer determine whether you are able to keep up repayments upon credit! Dont go wild though.

5) Save, save save. You say you are on good money, so save it. Think of consumer goods as just collections of meaningless atoms that will one day be dumped. I find this helps me to avoid wasting money.

Remember designers families get richer every time a sucker falls for thier pathetic output (eg; D & G or Posh & Becks) - do you really want to give these grossly rich people even more of your money? They are FARMING US ALL, dont fall for it.

jay_mi

thanks everyone for the advice, i was hoping to get a 100% mortgage would this not be possible?