100% Mortgage with **** credit history?
Discussion
Getting a bit sick of spending nearly £500 a month my landlords way every month so thinking about a mortgage. Only issue is my credit history and I have no deposit. I'm living by myself, from paycheck to paycheck and have no savings and realistically have no chance of saving anything either. My credit history is pretty s
t as when I was married we had a loan, a credit card and a store card which were all in my name and I couldn't afford the repayments by myself.
I now have just a credit card but most of the previous debts are still outstanding but I haven't been contacted about any of them in years so not sure what's happened there. My Cc company have just offered an increased credit limit and I haven't missed a payment on it yet and am actually paying £50 a month fixed amount as the current credit limit isn't very large, no doubt due to my rubbish credit history.
So, what is the best way of looking at a mortgage? The house isn't worth more than £100k, probably less and I'm 40 with no real dependants myself. My kids come at the weekend but stay with their now remarried mum during the week. Is it worth approaching my bank that I've been with for 30 years? Are there specialist brokers for this kind of thing that won't charge me hundreds up front that I can't pay? Is all hope lost due to my circumstances?
t as when I was married we had a loan, a credit card and a store card which were all in my name and I couldn't afford the repayments by myself. I now have just a credit card but most of the previous debts are still outstanding but I haven't been contacted about any of them in years so not sure what's happened there. My Cc company have just offered an increased credit limit and I haven't missed a payment on it yet and am actually paying £50 a month fixed amount as the current credit limit isn't very large, no doubt due to my rubbish credit history.
So, what is the best way of looking at a mortgage? The house isn't worth more than £100k, probably less and I'm 40 with no real dependants myself. My kids come at the weekend but stay with their now remarried mum during the week. Is it worth approaching my bank that I've been with for 30 years? Are there specialist brokers for this kind of thing that won't charge me hundreds up front that I can't pay? Is all hope lost due to my circumstances?
carreauchompeur said:
Shared Ownership.
This... only real option for those that have no deposit.But even then it could be an issue if you are living hand to mouth and have lots of debt still there, that even on this scheme they might not see you as anything other than very high risk.
100% mortgages don't really exist now and I think that the banks want people to have at least 6 months of payments in savings in case of job loss otherwise they get very very nervous.
steve954 said:
carreauchompeur said:
Shared Ownership.
I have a shared ownership house and I needed a deposit for the mortgage and not only that I needed a mortgage which would a mortgage which would fit the terms and conditions that the housing association wanted! Which quite frankly was a pita.Sarnie may correct me but I'd say it looks bleak. Stress tests are tough these days and if you are living pay check to paycheck, no deposit and with outstanding debts,I think it'll be high on impossible.
What's your salary OP? It may swing it if high but (apologies if I'm wrong) I'm assuming it isn't?
What's your salary OP? It may swing it if high but (apologies if I'm wrong) I'm assuming it isn't?
p1stonhead said:
Sarnie may correct me but I'd say it looks bleak. Stress tests are tough these days and if you are living pay check to paycheck, no deposit and with outstanding debts,I think it'll be high on impossible.
What's your salary OP? It may swing it if high but (apologies if I'm wrong) I'm assuming it isn't?
Sadly not very high, certainly not high enough to put anything away for a deposit. All in I'm clearing about £21k. My sole 'pleasures' amount to a mobile contract, Spotify and Fibre broadband. I own my car outright so it's not like I can cut back here and there and have a few hundred pounds to put away each month. What's your salary OP? It may swing it if high but (apologies if I'm wrong) I'm assuming it isn't?
Edited by MissChief on Sunday 19th April 20:13
Purity14 said:
£21,000 per year
=
£1436 per month in wages
---house bills---
£480 council tax
£90 council tax
---average fuel costs---
£50 electric
£50 gas
£50 water
---other
£100 food (£25 week)
£10 spotify
£36 phone bill (could cut back here)
£570 remaining per month.
Depends on your commuting costs and your car tax/insurance
You could always get a lodger for say £230pm?
That way you could save £800 per month.
You could almost hit £10k savings in one year if you religiously smash it, depends how motivated you are.
This is pretty similar to me. I saved my deposit up last year by strictly controlling my spending (far fewer nights out, cancelled spotify etc) and hoovering up as much overtime as work would allow. =
£1436 per month in wages
---house bills---
£480 council tax
£90 council tax
---average fuel costs---
£50 electric
£50 gas
£50 water
---other
£100 food (£25 week)
£10 spotify
£36 phone bill (could cut back here)
£570 remaining per month.
Depends on your commuting costs and your car tax/insurance
You could always get a lodger for say £230pm?
That way you could save £800 per month.
You could almost hit £10k savings in one year if you religiously smash it, depends how motivated you are.
Worth it now as not 'having' to save 800-1000 a month leaves a lot to set the new house up.
MissChief said:
Getting a bit sick of spending nearly £500 a month my landlords way every month so thinking about a mortgage. Only issue is my credit history and I have no deposit. I'm living by myself, from paycheck to paycheck and have no savings and realistically have no chance of saving anything either. My credit history is pretty st as when I was married we had a loan, a credit card and a store card which were all in my name and I couldn't afford the repayments by myself.
I now have just a credit card but most of the previous debts are still outstanding but I haven't been contacted about any of them in years so not sure what's happened there. My Cc company have just offered an increased credit limit and I haven't missed a payment on it yet and am actually paying £50 a month fixed amount as the current credit limit isn't very large, no doubt due to my rubbish credit history.
So, what is the best way of looking at a mortgage? The house isn't worth more than £100k, probably less and I'm 40 with no real dependants myself. My kids come at the weekend but stay with their now remarried mum during the week. Is it worth approaching my bank that I've been with for 30 years? Are there specialist brokers for this kind of thing that won't charge me hundreds up front that I can't pay? Is all hope lost due to my circumstances?
Maybe get in touch with the people you already own money to and start clearing that off before asking someone else to lend you more money?t as when I was married we had a loan, a credit card and a store card which were all in my name and I couldn't afford the repayments by myself. I now have just a credit card but most of the previous debts are still outstanding but I haven't been contacted about any of them in years so not sure what's happened there. My Cc company have just offered an increased credit limit and I haven't missed a payment on it yet and am actually paying £50 a month fixed amount as the current credit limit isn't very large, no doubt due to my rubbish credit history.
So, what is the best way of looking at a mortgage? The house isn't worth more than £100k, probably less and I'm 40 with no real dependants myself. My kids come at the weekend but stay with their now remarried mum during the week. Is it worth approaching my bank that I've been with for 30 years? Are there specialist brokers for this kind of thing that won't charge me hundreds up front that I can't pay? Is all hope lost due to my circumstances?
Purity14 said:
£21,000 per year
=
£1436 per month in wages
---house bills---
£480 council tax
£90 council tax
---average fuel costs---
£50 electric
£50 gas
£50 water
---other
£100 food (£25 week)
£10 spotify
£36 phone bill (could cut back here)
£570 remaining per month.
Depends on your commuting costs and your car tax/insurance
You could always get a lodger for say £230pm?
That way you could save £800 per month.
You could almost hit £10k savings in one year if you religiously smash it, depends how motivated you are.
Good bill is very light. =
£1436 per month in wages
---house bills---
£480 council tax
£90 council tax
---average fuel costs---
£50 electric
£50 gas
£50 water
---other
£100 food (£25 week)
£10 spotify
£36 phone bill (could cut back here)
£570 remaining per month.
Depends on your commuting costs and your car tax/insurance
You could always get a lodger for say £230pm?
That way you could save £800 per month.
You could almost hit £10k savings in one year if you religiously smash it, depends how motivated you are.
Where is household consumables?
Where is the clothing budget
Where is the having fun budget.
Can you move back in with your parents? You could save a fortune even if chipping in towards the extra cost.
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