A reader asked: I really want to stop renting and own my own house. But I'm in my mid thirties and my credit score is very poor. I've been careless and sometimes stupid, there were two defaults in 2018 and several more before that. None of them yet repaid. I've not used my credit card since January but the balance is huge. Can this be done? Is it worth trying to fix this? You have to decide … [Read more...]
Articles about Mortgages
Mortgages are a "priority debt". If you are having difficulty paying the mortgage you need to take debt advice as soon as possible - the earlier you do this, the more options you are likely to have.
These pages list all Debt Camel articles about mortgages in date order. If you would prefer to see the most popular articles grouped by theme, looking at "problems getting a Mortgage", "problems if you already have a mortgage" and "interest rates", then look at the Mortgages and Debt page.
Are 35 or 40 year mortgages a good idea?
Mortgage terms are getting longer, especially for first-time buyers. In 2006, fewer than two in five first-time buyers had a mortgage that was more than 25 years. In 2018, the average mortgage term was 30 years for a first-time buyer and more than two-thirds were over 25 years. Very long mortgages are also becoming more common. In 2017 15% of new mortgages were for 35 years or more. But … [Read more...]
Options if you have an interest-only mortgage
160,000 interest-only mortgages will be ending in 2019-20. And many more families will have interest-only mortgages ending after 2020, with a big peak in numbers in 2027-8 and in 2032. When an interest-only mortgage ends, you have to repay all the amount you borrowed. The money to repay it can come from three sources: savings or investments; by getting a new mortgage; or by selling … [Read more...]
Recent payday loans make it hard to get a mortgage in 2019
Having a recent payday loan on your credit history can make it much harder for you to get a mortgage at a good rate - or even at all! If you have used payday loans, the best advice for a mortgage application is: wait until at least 12 months have passed after your last payday loan; always go through a good broker; a payday loan affordability complaint may help clean up your credit … [Read more...]
I have debts – can I get a mortgage?
Mortgage lenders have to assess in detail whether a loan is really affordable for the borrower. You may think "well the mortgage is going cost the same as my rent, so obviously I can afford it", but the mortgage lender will be thinking ahead to when interest rates go up in 2019 or 2020. A few years ago, lenders only looked at the size of your deposit, your credit rating and your income. Now in … [Read more...]
Support for Mortgage Interest (SMI) is now a loan – should you agree to this?
Support for Mortgage Interest (SMI) helps people with the cost of their mortgage if they aren't working. It has been paid as a benefit since 1948, but in April 2018 this changed and now it is only given as a loan that is secured on your house. Here is the DWP leaflet describing the new loan: DWP SMI Factsheet (6 April). You may see LMI (loans for Morgage Interest) used as the new name for this, … [Read more...]
Mortgage repossession and your credit record
A reader, Mr D, asked: I had a mortgage shortfall from 2006 after my house was repossessed by Natwest. As a mortgage shortfall stays on file for 12 years, I decided to make a Full and Final settlement offer in January this year which they accepted and which has now been paid. Now with both Equifax and Experian, the account has disappeared, it doesn't appear in my open or closed accounts. … [Read more...]
Help to Buy mortgages now reaching the crucial 5 year point
The first Help to Buy mortgages were given in April 2013, so they are getting to the five-year point when the government's 20% share stops being "free". If you have used the Help to Buy scheme, this article looks at what your options are at five years. And if you are thinking of buying your first home with Help to Buy, read this so you know what happens in five years time - don't assume it … [Read more...]
How fast can I improve my credit score for a mortgage?
Here are some questions I have seen recently about how long it takes to improve your credit score to get a mortgage: I was foolish with credit cards for years but now I am determined to buy a house - how long will this take? My credit score is dreadful. My new partner has a good credit record and we want to get a mortgage. I have a poor credit rating but I have now inherited a deposit. … [Read more...]
Help for mortgage prisoners who need a cheaper mortgage?
With mortgage rates so low, 2019 should be a great time if you want to remortgage or move house. But the Financial Conduct Authority (FCA) has published research showing there are 800,000 people in the UK who could benefit if they switch to a cheaper mortgage. Most of these are people whose fixed rate has ended but who have stayed on their lender's variable rate for more than six months. And … [Read more...]