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Mortgages and previous debt
Shoshannah
Posts: 667 Forumite
Hi all.
As a 23 year old student who lived with parents until 18 then moved into rented property, plus the fact that I will finish my course £40K in debt and that house prices are through the roof, I have always assumed I would not be able to buy a house for decades.
I would be telling a huge lie if I said I truly understand the impact of the 'credit crunch' but from what I have read in the newspapers it seems that lenders are getting very twitchy about who they give credit to. The Times said the other week that even a single missed payment can be a breach big enough to prevent you getting a mortgage.
While I am not planning on buying a house for a few years yet (the issue of 'when is the right time to buy' is an entirely different issue), these reports have got me thinking. Even in less uneasy times, would I be able to get a mortgage?
As I said before, I'm a student and have a student loan, but no other debts. I am not in my overdraft and have no other loans. I have no credit cards and don't want one, I'm old fashioned and prefer to only spend what I have as much as possible. However, will this mean I will have difficulty getting a mortgage as I have no evidence of a good credit rating? I have direct debits and never miss payments on any of my outgoings, but do these count? Sorry for being somewhat financially ignorant.
Main trouble is, my boyfriend's credit rating is shot. Long before I met him he got into debt with credit cards and commercial loans (he admits now to being naive and careless) and is now paying back a total of £20,000 through a no-interest payplan thing. He estimates he now owes about £13,000 on that. He is 30 and in full-time work.
If we were to buy a house together in a few years, would his poor credit rating stop us from getting a mortgage? I'm guessing it would in the current climate but we're not considering it yet as once I graduate we are likely to move anyway.
I guess I'm just worrying in general.
As a 23 year old student who lived with parents until 18 then moved into rented property, plus the fact that I will finish my course £40K in debt and that house prices are through the roof, I have always assumed I would not be able to buy a house for decades.
I would be telling a huge lie if I said I truly understand the impact of the 'credit crunch' but from what I have read in the newspapers it seems that lenders are getting very twitchy about who they give credit to. The Times said the other week that even a single missed payment can be a breach big enough to prevent you getting a mortgage.
While I am not planning on buying a house for a few years yet (the issue of 'when is the right time to buy' is an entirely different issue), these reports have got me thinking. Even in less uneasy times, would I be able to get a mortgage?
As I said before, I'm a student and have a student loan, but no other debts. I am not in my overdraft and have no other loans. I have no credit cards and don't want one, I'm old fashioned and prefer to only spend what I have as much as possible.
However, will this mean I will have difficulty getting a mortgage as I have no evidence of a good credit rating? I have direct debits and never miss payments on any of my outgoings, but do these count? Sorry for being somewhat financially ignorant.Main trouble is, my boyfriend's credit rating is shot. Long before I met him he got into debt with credit cards and commercial loans (he admits now to being naive and careless) and is now paying back a total of £20,000 through a no-interest payplan thing. He estimates he now owes about £13,000 on that. He is 30 and in full-time work.
If we were to buy a house together in a few years, would his poor credit rating stop us from getting a mortgage? I'm guessing it would in the current climate but we're not considering it yet as once I graduate we are likely to move anyway.
I guess I'm just worrying in general.
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