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(Inherited money)want to buy a house-very poor credit

sarahpolak1992
sarahpolak1992 Posts: 5 Forumite
in House buying, renting & selling
Hi, I am married with 3 children have recently inherited £100,000 from my grandma.I am currently private renting but really want to buy my own house but unfortunately have very poor credit to be able to get a mortgage. I am Ideally wanting to put about £60,000 of it towards a house ,however really don't know what my options are ,any advice appreciated.
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Comments

  • chanz4
    chanz4 Posts: 10,890 Forumite
    First Anniversary Name Dropper First Post Xmas Saver!
    why not put the £100k towards it
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    First Anniversary Name Dropper First Post
    If the lender decides you are a poor risk for a big mortgage you might be less of a risk if you have a bigger deposit? Find a broker.
  • KatrinaWaves
    KatrinaWaves Posts: 2,944 Forumite
    First Anniversary Name Dropper First Post
    It really depends how much houses are that you want and your income. Assuming you have very poor credit maybe work on something along the lines of 2x salary, and anything else you get could be a bonus.
  • jonathanftb
    jonathanftb Posts: 6 Forumite
    Seek professional financial advice, people who come into large amounts of money not earned usually end up poorly managing it (despite best intentions), this is a good opportunity for you and your family.
  • Parkingfines
    Parkingfines Posts: 161 Forumite
    Where are you in the country..many places you could buy a solid terrace for 80k!!
  • Rosemary7391
    Rosemary7391 Posts: 2,879 Forumite
    First Post First Anniversary Combo Breaker
    chanz4 wrote: »
    why not put the £100k towards it


    Assuming the OP doesn't already have a decent savings cushion I'd suggest they want to keep some back in case of urgent repairs, boiler breakdown etc.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    What about your husband?

    You say you have poor credit - what does that actually mean, low credit score or lots of missed payments and defaults?
  • sarahpolak1992
    sarahpolak1992 Posts: 5 Forumite
    I have poor credit which is accumulated by missed payments,ccjs and other unpaid debts ,purely down to struggling financially.Obviously the first thing I want to do it pay all my debts ,which is roughly £4,500.I am currently a student and work bank hours so only earning roughly £300 a month and my husband only earns about £850 a month,So really doesn't put us in a good position for a mortgage even with a large deposit I wouldn't have thought.However we are in Lincolnshire and house price are very reasonable.
  • KatrinaWaves
    KatrinaWaves Posts: 2,944 Forumite
    First Anniversary Name Dropper First Post
    You are likely to only get a very small mortgage.

    How far will your money go? I agree with paying off your debt but that leaves you with 95 k, why have you decided to keep aside another 35k? 10k for a rainy day i understand, but 35k?
  • sarahpolak1992
    sarahpolak1992 Posts: 5 Forumite
    Initially I was thinking maybe a shared ownership property would be a option, which would allow me to pay debts, buy new things for house ,get an extra car(we really struggle with 1 between us),have some to play with, then obviously saving some for a rainy day ,However if I was able to get a mortgage I would definitely want to put a lot more towards a house no question about it.
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