Previous debt - mortgage hunting

Sheffield_Tiger

Hi, any tips on mortgage hunting with a bad history

Have about 10k of debt that I'm paying off - having missed a few payments and got in a bit of a mess a year or so ago with a few months of missed payments, a pay rise and some common sense got things managable. But restricted to an Electron card etc.

Have inherited a house that will leave me, once all things, debt etc and some rainy day money/home improvement funds, realistically with 40k to put down on a house and earning 20K pa

The worry that I have is that lenders will not want to know because of my recent history...is it likely that only the sharks will entertain me?

Sheffield_Tiger

*bump*

Sorry, don't like bumping threads but this is playing on my mind so if anyone has a clue on possibilities, it would be much appreciated

StaceyAKelly

Apparently there are lots of lenders out there who will help you, just be patient and someone will get back to you soon. I know its hard waiting when something is playing on your mind, but there are lots of really helpful people on here and it will be worth the wait.

Good Luck xx

NeilQuinn

There'll be lenders who will help you, especially with a £40K deposit. You'll probably be restricted to about 4 - 4.5 times your income for borrowing amounts though. A mortgage of £80 - £90,000 should be easily obtainable.

Some lenders have now switched to affordability calculators though. Depending on your other outgoings when the time comes, it can sometimes work out that they'll lend you 5 times your income or as little as 3 times your income.

Sheffield_Tiger

Thanks..

With that to set my mind at rest I can continue my quest to live in boxes for the time being as I compact my possessions into boxes to make space to move the contents of my late mother's house into one single rented room(!) in confidence that I am likely to be able to find somewhere once the house is sold....which is why I was wondering.

Thankfully I do have an understanding landlord who won't tie me into signing a new lengthy contract or moan about the amount of stuff in the house as long as I keep it compacted

herbiesjp

Hopefully you will not be limited to "sharks" but standard rates, for those previous minor points.

Get a copy of your up to date credit file though, to check what that looks like

chappers

Was just going to say that you need to find out just how bad your credit file is then go see a broker armed with that information