Bad credit & landlord offered to sell house to us

[OnNaturesCourse]

Back story.:
I am a long term tenant.
I have chronically bad credit.
Partner has low credit.
(credit issues nothing to do with mkssj f rent - it's been car/credit card payments over covid and death of child/being out of work)
I am on universal credit
Partner is working

Got a letter from landlord recently advising they are downsizing their portfolio and selling this house. They offered to do a "private sale" with discount, and mentioned a "tenant mortgage" which could be provided by their mortgage partner. This mortgage would be where any discount would be used as part deposit for the house.

All sounds wonderful but unfortunately our credit is through the floor.

I don't know what to do. We won't be accepted for a mortgage, will we? And we are going to struggle to find another landlord willing to rent to us now? Am I best getting onto my local council about potential homelessness?

We've been battling to resort our credit and get things on a even keel, now I feel like the rug has been pulled from under feet... After years of just keeping our head above water this is going to sink us after we've been trying so hard to build back up.

I would try to apply for the ‘tenant mortgage’, who knows, maybe the fact that you have paid your rent on time for years will count. Nothing to lose!

(we bought from our landlord, with a regular mortgage though)

Sorry to read about the recent difficult times you've had. I'd speak to the mortgage company asap. No point in worrying over it if they can give you some clear info easily.

I dont even know where to start with mortgages?

I’d also give a tenant mortgage a bash. Some mortgage companies don’t use credit reports. Then you’ll know either way.

Find a local broker not tied to any one lender

Thanks all.

I think I am going to speak to the landlord and seek figures etc. I can only try I guess - and luckily the landlord appears to be a genuinely good person so hopefully will be supportive.

i'm sorry to hear about the things you've been through🥲

Speaking to the landlord seems like the best idea if they have a portfolio they might be in a position to help you organise finance you've got nothing to lose by trying

I hope it works out for you as it's a fantastic opportunity!!

Perhaps your landlord has another property you could rent as you are a good tenant.

or perhaps social housing would buy it from your landlord.

although buying at a discount seems like a good idea, if you have constantly bad credit and presumably no savings buying a house is not necessarily a good idea.

you won’t get housing benefit towards the mortgage and also it’s down to you to repair the boiler/roof if anything goes wrong, no security blanket.

I'd talk to LL and explain about your poor credit and why it is poor. Point out that you have always prioritised paying the rent on time. Say you would like to buy but don't think you'd be credit worthy and see what they say. You could also ask if they have an alternative house you could rent or could postpone selling the house you live in for a year whilst you improve your credit rating.

Do you know how much he wants for it. ?
London and Country are good brokers (free).
It is possible to get low credit mortgages but they will be more expensive.

I was going to suggest London and Country.

I had terrible credit after escaping a financially abusive relationship. L&C were so helpful and, despite my poor credit rating, they managed to get us a decent mortgage with a good rate.

Thanks again.

I'm going to speak with LL next week.

My credit rating is 570, up from 254 last year so it's poor but improving.

And it'll continue to improve month on month so thats good.

I know, it's just slow but it's our budget right now while we repay, save and live...

@OnNaturesCourse how are you getting on? Currently in the same situation!

Don’t give up before you’ve started. Talk to the landlord and a broker and find out the facts.

Just saw this. My credit rating is worse than yours and I recently got a mortgage and am now a homeowner. Please don't despair! I used Mortgage Key (brokers) - they were brilliant!

Thanks all.

Sorry I took a break from MN for a while.

My LL has been great and helpful but unfortunately we can't really afford to buy the house, plus we don't think it's worth the discounted price never mind the asking price! We'd need to pour a lot of money into it (new windows, insulation etc etc)

I have had to contact the council and advise we are likely to be homeless but they won't help until we are actually homeless (with 2 kids and baby!)