A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [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.
Save a house deposit or pay off debt?
A reader asked: "A friend said not to pay my defaulted debts off but save money towards a deposit for a mortgage - is this a good idea?" It's often unwise to rely on friends for debt advice... They may be guessing, their situation may have been quite different from yours, or they may be assuming what happened to them years ago is still useful today. And in this case, the friend may know … [Read more...]
What help is there when you can’t pay the mortgage?
The Coronavirus mortgage rules which gave mortgage payment breaks have now all ended. But many people are not "back to normal". The good news is that there is still help you can get - but it is dependant on what you can get agreed with your lender. You can't just claim it automatically, as you could with the mortgage payment breaks. This article looks at what you can do when you can't … [Read more...]
95% mortgages return in 2021 – but is one right for you?
95% mortgages vanished with the pandemic At the beginning of 2020, this article started by saying "95% mortgages are back in fashion". It pointed out many more 95% mortgage offers there were compared to a few years ago. The interest rates were a bit higher than a mortgage with a 10%5 or greater deposit. But with the pandemic, mortgage lenders ran scared, concerned that house prices may fall … [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 for 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. How … [Read more...]
Support for Mortgage Interest (SMI) – should you take this loan?
Support for Mortgage Interest (SMI) helps people with the cost of their mortgage if they aren't working. It was paid as a benefit from 1948, but in 2018 this stopped. SMI is now only given as a loan that is secured on your house, see the gov.uk page on SMI. How much help does SMI give? If you lose your job, you can't claim SMI for 39 weeks. Many people don't have enough redundancy pay, … [Read more...]
I’m in a DMP – can I get a mortgage?
A reader asked about applying for a mortgage when she is in a Debt Management Plan (DMP): "I have been in a DMP for 8 years and still have 6 to go as I still owe £16,000. With hindsight, I should have gone bankrupt! My parents will give us a 20% deposit in 2021, but they don't know about my debts so I can't use their money to end the DMP. Will I be able to get a mortgage?" I've written before … [Read more...]
“Will partial settlement make it hard to get a mortgage?”
Ms F asked: "I have been in debt management for five years after my marriage breakdown. After an inheritance, I want to pay off my DMP as it will carry on for years. I could pay in full but my house needs some urgent work and my car is on its last legs. I asked about my credit score if I offer a partial settlement and was told this would show as partially settled on credit score file. Will I … [Read more...]
Credit Ladder – can renting boost your credit rating?
UPDATE - September 2020 - now Credit Ladder are proposing to charge you £60 a year to report to both Experian and Equifax. I suggest you don't bother! As a means of paying to try to improve your credit score this seems unnecessary, reporting to two is very little better than reporting to one. Do yourself a favour and pay that £5 a month off a debt instead. Or add it to your savings account if … [Read more...]
“On furlough, now redundant – what about my mortgage & IVA?”
A reader, Mr D, asked: I am being made redundant, no redundancy pay as I didn't work there long enough. We have managed my IVA payments when I was on furlough by taking a mortgage holiday but that is ending and now our household income will be halving. We will struggle to pay the mortgage let alone the IVA. My partner earns too much for me to get any benefits. I know I have to tell my IVA, but … [Read more...]