46 with poor credit score will I ever get a mortgage? Gabby1971

#1
Hi all



My darling daughter is now over the age of 18 and has left education and has her first job!

After being a single Mum all her life, my credit history has taken a battering, however I now find myself in a better position financially and have cleared all my debts apart from 1 which I am paying back monthly.

I am 46 and have rented privately for many years however would love to buy a little place of my own but am worried my age and bad credit history will make it a no go.

I had numerous defaulted accounts and 2 years ago a CCJ which has been cleared.

All my current credit accounts - car finance, mobile phone etc are up to date and I recently took out a credit card in order to improve my credit score further (not used it yet!)

In a years time I will be able to cash shares given by my employer which will be worth around £12,000 and the type of properties I am looking at are around £100,000.

Would I be in with a chance of getting a mortgage?

Other options are either having a joint mortgage with my daughter who has an unblemished record, or her getting the mortgage on her own and buying a second property in years to come when she is ready to move out, and I would continue to pay the existing mortgage (the house would be left to her anyway!)

Any advice would be greatly appreciated!



Thanks

Gab

#2
I would advise against your daughter getting a joint mortgage with you. Dont take that personally, but if you take out a joint commitment you then become finacially associated and it is not fair on your daughter. Added to that, if your daughter buys a property with you and then wants another for herself, she would be liable for higher rate stamp duty...again not really fair on your daughter.



In your name, with a 15% deposit I think you will have a few options, rates may not be high street rates but they would not be too bad, although I would not rule out high street rates at this stage.



Get your credit reports infront of a good experienced broker and I am sure you will be fine.

#3
Hi



Thanks so much for the advice - I didn't realise the possible impact on my daughter, or the stamp duty issue so I appreciate your help with that.

Will continue to work on my credit score then speak with a broker when the lump sum is due.

We have access to a financial advisor free of charge through work so may book an appointment with him!



Thanks again.

#4
Good luck OP - nothing is ever impossible at any age. Lenders will now lend up to age 85 - subject to you demonstrating you can pay the mortgage.



Have you opened a help to buy isa? You can put in £1200 in month one (good idea to max that out in month 1) and then if pay in £200 monthly by month 3 you will have invested enough to get a £400 government bonus when you take out a mortgage for your first home (just make sure your solicitor is signed up). And each month thereafter if you pay in £200 the bonus goes up £50. It will certainly help and is something you can do to start the process and save up.



Your daughter can open one too - and get a lifetime isa in due course as well which is more useful. Shame its not available to over 40s - as surely the government needs to be concerned about people renting in retirement.

#5
Thanks so much for the advice!, I pay a decent amount into my work pension and they also contribute a good percentage - would this be considered as a means to pay the mortgage after I retire?

My Daughter has talked about opening a help to buy ISA ready for when the time comes for her to buy, to be honest I hadn't thought about one for myself but will take a look now.

#6



Thanks so much for the advice!, I pay a decent amount into my work pension and they also contribute a good percentage - would this be considered as a means to pay the mortgage after I retire?

My Daughter has talked about opening a help to buy ISA ready for when the time comes for her to buy, to be honest I hadn't thought about one for myself but will take a look now.
Originally posted by Gabby1971


There is a useful guide here - plus details of HTB isa best buys.



There is no age limit for the help to buy isa - an 85 year old buying their first home with a mortgage could get the bonus.



http://www.moneysavingexpert.com/savings/help-to-buy-ISA





As for your pension it might depend if its final salary - guaranteed pension - or defined contribution and how much it might be. You could potentially use a pension lump sum to pay off the mortgage if you get one on your pension scheme. You will need to ask your mortgage provider/broker for advice

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