Hi everyone. First post on here; just after a bit of advice re mortgages as I am absolutely clueless! Basically I am wanting your opinion as to whether I could actually obtain a mortgage given my circumstances.
My situation is: I am 45, never had a mortgage so first time buyer. Renting at present (local authority, same landlord for 4 years). Heres the problematic part; in the past I have had pretty bad debt / credit problems. Going back, 5 yrs ago I had approx £35k debt on credit cards a real mess, history of late / missed payments, one moved to a collection agency. My financial situation has improved dramatically over recent yrs and about 2 months I reduced the debt to zero. Have a full time job with a salary around £16k (same employer for 10 yrs) and also run a business from home which makes me a profit of around £10.5k after tax (have all accounts / tax returns from starting the biz). Want to buy a very low priced property. I have seen a house I am keen on for (believe it or not), £45k and can probably manage about £7k deposit. Given my age I would like a mortgage over a fairly short term (10-12 years maybe?).
Although I have no debt and feel I can comfortably afford a mortgage I am worried that my credit history will go against me. I recently had an application for a business account at my own bank declined. After endless phone calls to find out the reason I was told that as the credit card I once had with them (HSBC) was moved over to Metropolitan collection services, even though it is now paid off I would have to wait 6 years from the date of the debt being cleared until they could offer me any credit / new accounts!
Sorry for the long post, but does anyone think I am realistically in a position to get a mortgage loan and if so what is the max I could borrow and where should I start? Thanks
My situation is: I am 45, never had a mortgage so first time buyer. Renting at present (local authority, same landlord for 4 years). Heres the problematic part; in the past I have had pretty bad debt / credit problems. Going back, 5 yrs ago I had approx £35k debt on credit cards a real mess, history of late / missed payments, one moved to a collection agency. My financial situation has improved dramatically over recent yrs and about 2 months I reduced the debt to zero. Have a full time job with a salary around £16k (same employer for 10 yrs) and also run a business from home which makes me a profit of around £10.5k after tax (have all accounts / tax returns from starting the biz). Want to buy a very low priced property. I have seen a house I am keen on for (believe it or not), £45k and can probably manage about £7k deposit. Given my age I would like a mortgage over a fairly short term (10-12 years maybe?).
Although I have no debt and feel I can comfortably afford a mortgage I am worried that my credit history will go against me. I recently had an application for a business account at my own bank declined. After endless phone calls to find out the reason I was told that as the credit card I once had with them (HSBC) was moved over to Metropolitan collection services, even though it is now paid off I would have to wait 6 years from the date of the debt being cleared until they could offer me any credit / new accounts!
Sorry for the long post, but does anyone think I am realistically in a position to get a mortgage loan and if so what is the max I could borrow and where should I start? Thanks
