Mortgages are normally a “good” sort of debt. Not only do you have somewhere to live, and avoid the costs and uncertainty of renting, but you can be buying a valuable asset.
But even though mortgages are a sensible way to borrow, and mortgage rates are at record lows in 2018, they can still have problems. And these can be made worse in Britain because of the high property prices.
Getting a mortgage if you haven’t had big debt problems
How fast can I improve my credit score to get a mortgage? Your credit history is a way a lender asses how well you have managed credit in the past, so this matters even if the actual credit score number doesn’t.
95% mortgages – what you need to know In 2018 there are now a lot of mortgages on offer if you only have a 5% deposit – good news for first-time buyers but be careful about the drawbacks.
Is a long – 35 or 40 year – mortgage a good idea? Some people, especially first-time buyers, are choosing very long mortgages to keep the monthly payments low. But these can run into problems, it’s not the great option it might appear.
I have debts – can I get a mortgage? Having debts can create problems if you want to get a mortgage even if your credit score is good and you have never missed payments. Because you are having to make debt repayments, that takes up some of your income so it affects the lenders’ affordability calculations.
Should paying your rent on time help you to get a mortgage? It may sound obvious that if you have paid £900 in rent on time for the last few years then you can pay a mortgage of £900, but there are a lot of problems with the suggestion.
How to balance clearing debts with saving for a deposit There isn’t an easy answer to this question, but this article explores what you should be thinking about.
Getting a mortgage if you have had big debt problems
Will recent defaults stop me getting a mortgage? This is answering a reader’s question in detail. He has inherited some money so wanted to know what his chances of getting a mortgage are.
I’m in a DMP – can I get a mortgage? Debt management can go on for a long time and can be shown on your credit file in various ways, so there isn’t a simple answer to this question, it depends on your situation.
Payday loans make it harder to get a mortgage A few years ago some payday lenders suggested that taking out their loans and repaying them improves your credit record. Unfortunately, mortgage lenders tend to see having payday loans on your credit history as a sign that you have had big financial difficulties.
Can you ever get a mortgage if you have been insolvent? One of the main concerns people have about going bankrupt, especially if they are still quite young, is that they may never be able to get a mortgage in future. This isn’t right – although bankruptcy, IVAs or DROs wreck your credit record for six years, you can recover from this if you can get a good deposit together.
Can you use “Right to Buy” if you have debts? There is a clause which says you can’t have an arrangement with your creditors – find out what this means.
When you already have a mortgage
Fixed rate ending? Should your remortgage? More than a million people could save a few hundred or even a thousand pounds a year by getting a new fixed rate. Find out what your 4 options are at the end of a fixed rate and how to decide which is right for you.
Help to Buy mortgages now reaching the crucial 5 year point The government Help To Buy scheme started in 2013, so the first users are now getting to the five year mark when the government starts to charge interest on its 20% share. Should you try to remortgage?
Options if you have an interest-only mortgage At the end of an interest-only mortgage you have to repay the full amount, but nearly a million people in Britain don’t have a plan for how they can afford to do this. Many are hoping they can remortgage, or be allowed to carry on making their usual monthly payments, but this isn’t likely. If you are one of these people, find out what your real options are.
Refused a mortgage – is this reasonable? There are millions of “mortgage prisoners” in Britain, who are stuck in their current mortgage because they don’t meet the new affordability rules that were introduced in 2014. Sometimes the lenders are applying these too strictly though and can be challenged.
Financial problems when you have a mortgage
For remortgage/equity release and secured loan problems if you are in an IVA, look at the Guide to IVAs.
SMI – should you accept the new loan? Support for Mortgage Interest is the name given to the help you can get from the benefits system with your mortgage costs if you retired, unemployed or too ill to work. In April 2018 this stopped being paid as a benefit and started to be given as a secured loan. But if you are out of work it’s still worth finding out about though!
Charging Orders and Orders for Sale If you have a house with equity and you are having problems with your unsecured debts, you may be worried about your creditors getting a charge on your house or even make you sell it. Find out the facts about this area.
Sell the house – a tough decision One of the main aims of debt advice is to let people stay in their own home – but this isn’t always the best decision, so have a think about whether it is right for you.
Repossessions
Repossession after bankruptcy Sometimes when everything has gone wrong and you have a house with negative equity you want a completely clean start after going bankrupt. Find out how to hand back the keys after bankruptcy and make sure your mortgage debt is included in your bankruptcy.
How repossession will affect your credit recordMost of the problems that occur here when a lender doesn’t add the correct default date.
Will very low mortgage repossession rates continue? Three reasons why they may be going to increase from 2016.