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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

WWYD if you can't get a mortgage ?

78 replies

ALittleBitOfMagic · 21/08/2013 10:19

DH and I live in a 2 bedroom council flat . We have dd who is 8 and ds who is 9mo . We planned to move after Christmas but found out dh has an old default on his credit report . So now we can't get a mortgage . So our options are :

stay here another 4 years until the the default drops off . This would mean we would have a 12yo sharing a room with her 4yo brother .

private rent . Our rent would likely double which means no way of saving for deposit and other buying costs

try to get a house swap but we only qualify for a 2 bed so would mean going through all the house move hassle and they would still have to share a room .

Dh wants to private rent but I want to try and get a swap . He says there's no point in swapping to another 2 bed but I think if we get a 2 bed house then it will at least be less cramped and we won't be living in a hoarders paradise . I don't want to spend loads of money on rent on a house we don't/will never own . AIBU ? Should I just private rent and get the dcs their space ? WWYD in this situation ?

OP posts:

YoniMitchell · 21/08/2013 11:05

Any reason you can't just pay off the debt? I assume you have savings for a deposit if you have been speakingto mortgage brokers and were planning to move after Christmas. This would maybe set you back a few months, but your plan needn't change beyond that.

Feminine · 21/08/2013 11:05

So, you have been unfairly treated then. Your situation is like mine.

Go back to the phone company. they have an obligation to fix this.

Damnautocorrect · 21/08/2013 11:07

Please don't rent privately, its shit.
You can't have pets without permission
Can't decorate without permission
Subject to them checking your house practically whenever they want.

Your little one spills something on the carpet you have to replace it if you can't clean it
They can put the rent up if they feel like it
They can put the house up for sale if they want to
If they do the last 2 you might have to move area so schools

It's really shit don't do it unless you have to

YoniMitchell · 21/08/2013 11:08

X-post. Sorry!

I'd speak to the phone company and get them to sort their cock-up and try to get the credit rating improved on the back of that.

Good luck!

LaRegina · 21/08/2013 11:08

Have you spoken to the CAB? They may be able to advise on how to sort the problem with your debt.

Also, have you banked with the same bank/building society for many years with no probs/debts? If so it may be worth going to them direct for the mortgage and explaining exactly what the situation is with the one 'blip' on your credit history.

Original poster

ALittleBitOfMagic · 21/08/2013 11:09

We have tried feminine but they wouldn't entertain dh they said he was liable for it . He asked for all his last bills to be sent out and there was a £300 cancelation fee on them !! Not once did the girl in the shop ever mention this . She said the last bill would be a bit more than usual to cover the 30 day notice period then that would be him . Our next step is to write to them .

OP posts:

Original poster

ALittleBitOfMagic · 21/08/2013 11:11

LaRegina that's my next move too I've had a loan and credit card with my bank and we have never missed a payment . So I'm hoping they will be sympathetic .

OP posts:

MadBusLady · 21/08/2013 11:13

I wouldn't swap a council tenancy for a private one unless I absolutely had to. The separate rooms thing won't even start to be an issue for a year or so, so I would definitely pursue getting the default cleared first.

Could you do some serious minimalist clearing out to make your current place more useable if it's a bit of a hoarder's paradise at the moment?

findingme · 21/08/2013 11:14

I would personally take hettienne's advice. We live in a lovely 2 bed council house on a nice estate and have great neighbours. We really don't want to move but want another baby. We are going to get a sofa bed and let the children have the bedrooms. Not conventional but it will suit us.

We have rented privately and it can be a nightmare. Plus if you go through an estate agent they will probably credit check you and your default will show up. We really struggled to find landlords that would take us with my credit history so always had to go for private ads in the paper. I would not give up my council house to rent privately, only to buy.

Good luck

TheGirlFromIpanema · 21/08/2013 11:15

I think there is a way of adding notes to your credit report, sort of an explanation if you like.

Try that and then approach another broker, and then another if necessary.

I secured a mortgage with a horrendous bad credit history by sheer persistence. It was C&G if that helps; with explanations of history and a proper plan for going forward my FA performed miracles

Groovee · 21/08/2013 11:16

When we recently applied for a remortgage, our broker told us to be upfront with any issues. I had 2 late payments and he spoke to 4 big banks who said because I was upfront and had a reasonable explaination (I paid too early and it didn't count as that months payment). They happened 3 years apart too. They would be happy to lend to us. I would go to another independant financial advisor and see what they say.

Otherwise, what age would your council allow you to get a 3 bedroomed house? Maybe you could hang it out for another couple of years and then get a swap?

My friend lives in a 2 bed flat. They've put a partition up in the biggest bedroom, giving each child a room of their own. They aren't the biggest but the children are grateful for that bit privacy.

LaRegina · 21/08/2013 11:19

OP I used to work in a bank and to a certain extent there is discretion in deciding whether to overlook (small) issues on credit reports. Going into the bank in person and taking the time to explain the situation goes a long way if you're already a long standing customer.

Viviennemary · 21/08/2013 11:19

I don't think it's usually a good idea to swap from council to private as it would be far less secure. Also try different mortgage companies as some might lend as it was an old credit report. Would anybody in your family go guarantor on your mortgage. That would be a big ask I know. Hope you get sorted out.

turkeyboots · 21/08/2013 11:24

If your credit rating isn't good you'll be very unlikely to get a private rental agreement either. As well as the cost, insecurity and all other downsides mentioned here.

Id look for a swap and save like mad if I were you.

DrHolmes · 21/08/2013 11:25

I am in same situation as you op and reading some of these responses has really annoyed me as these posters do not understand that once a dafault is on the account that's it, set in stone, for six years regardless if you settle it. I had three defaults when I was younger I have to wait two more years for the last one to come off. I looked into a mortgage and I did actually have two willing to lend to me so I do think you would find someone as you only have one default. However, you will need a larger deposit than most and the rates would be higher than the average high st lender. So you will have to weigh up your options if you do find a lender. I would say staying put would be the best thing for you and save, save, save. Save like no one has saved before! I didn't go with the lenders willing to lend to me. I had looked at a flat for 70k and they said they would lend me a 80% mortgage but the nail in the coffin was that they would only let me look at property with a minimum value of 94k! So I needed at least 20k saved up to even start with... I live with my bf and his parents and its driving me mad. Luckily for me my parents are in a position to buy a property that I will move into and pay them rent at the same time I will have enough to save each month and hopefully become a homeowner in five years or so. It's a hard game and the credit ratings are so rigid and tough. All the best to you!

Rockchick1984 · 21/08/2013 11:26

Do you claim housing benefit? If not you are likely to be able to do a swap to a 3 bed council house - bedroom tax is only something that impacts on people claiming HB. We got a 3 bed council property because (in my area anyway) so many people are trying to downsize because they don't want to start paying for their unnecessary bedroom.

Oh, and you are correct re the default staying on your credit file even if its settled, so ignore comments telling you that by paying it off it'll disappear

DrHolmes · 21/08/2013 11:27

Oh and fyi I used a mortgage advisor through right move and they really did a lot for me. Banks I found were a "computer says no" kind of thing.

Feminine · 21/08/2013 11:29

rock I mentioned up thread that I am in a similar situation.

I have been assured my file will be cleared next month.

Maybe its the amount of time, and the fact it obviously nothing to do with me?

Bowlersarm · 21/08/2013 11:34

I think you should stay where you are and save save save.

Your dd should be ok sharing until age 12, but it would be nice if she knew she would be getting her own room then.

In the meantime you have security, and there is no reason you can't keep reassessing the mortgage situation periodically in the meantime if you find a way round the default.

Rockchick1984 · 21/08/2013 11:37

Feminine that is because they have admitted it was their cock-up, nothing you had done. The OP has already said the company concerned won't entertain any suggestion of this. Simply paying a default won't have an impact on your credit file, other than to say its now satisfied.

whiteandyellowiris · 21/08/2013 11:39

What's the debt for and for how much? I would clear that first then try for a morgage

Icedink · 21/08/2013 12:11

You would be crazy to give up a council tenancy to private rent! I would try to swap and save like crazy until the default comes off your credit file. Exactly the same thing happened with my dh with the phone cancellation charges, they made no attempt to contact him until 4 years later when it had gone up to nearly £700 from all the extra charges they had added

LazyMonkeyButler · 21/08/2013 12:22

Where in the UK do you live? Here, you would be eligible for a 3 bed council house once your DD turns 10, as two children of the opposite sex cannot share over the age of 10. I know they can share, but that is the council & housing association's criteria here.

Obviously, that means staying put for 2 years & then going on 'the list', but may be another option to consider if you still cannot get a mortgage by then.

I'm not saying that you should take a council tenancy above buying your own, just until you can get an affordable mortgage.

Sleepyhead33 · 21/08/2013 12:59

Hi,
I am in a similar situation. I know you have obviously researched the whole default/6 years thing so I apologise if I am telling you something you already know. If you don't settle( or partially settle) the default. Vodafone could at any point in the 6 years apply to court to register a ccj against the debt. I understand that this would then set the 6 year clock ticking again. maybe worth making some kind of offer so that it protects you against the ccj.

Good luck with it all, it is hard going at times.

Original poster

ALittleBitOfMagic · 21/08/2013 13:12

Hi sleepyhead thanks for the info but I'm in Scotland where ccjs don't exist . I would be eligible for a 3 bed when dd turns 10 and if I'm still here then I would definitely go on the list . However I'd have more chance of getting a mortgage then another council house . There's a family I know with two teenage girls and a 5yo boy in the same type flat as me and even they can't get one

OP posts:

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