Was hoping someone with knowledge/experience could help me out, as I've never even privately rented before and am looking to the future.
In a nutshell, I am aiming to look for a shared ownership property in 4 - 5 years. I went straight from living with my parents into a Housing Association property with my partner and our baby, and am pregnant with number 2. The terms of living in this property is that it is a stepping stone into private rental so we have a maximum of 3 years here.
My credit history is not good, I took out a series of payday loans when I was 19, stopped by 20. It wasn't a huge amount (max about £3k). My partner's isn't great as he has some missed payments from a relationship breakdown a few years before he met me (he is 9 years older) no loans, just missed payments.
I'm obviously really gutted as I know it is all completely self inflicted but my life has changed so much since being a stupid 19 year old in a bad place, I have a lovely stable job and a lovely little family.
I was hoping someone could advise how likely it is that I would be able to get a mortgage based on my circumstances. Sorry for rambling on - here is what I'm planning to do or will have, both good and bad:
- a guarantor (mum - parents are homeowners)
- a 5% deposit
- a small (around £300) CCJ which would have been issue around 4 - 5 years ago by this point, satisfied.
- a hopefully neutral credit rating apart from the CCJ.
- a bank account that has only been open for about 3 years in my name (currently use partner's)
- a joint income of approximately £32,000
Do you think I have a hope in hell of getting a mortgage for about £110,000? Do shared ownership mortgages have different criteria to regular ones? Will they take into account the wider circumstances surrounding my credit history (the fact that I was young, the fact that I no longer take any loans or anything out) or will my credit history be wiped clean by then anyway so won't have to explain to them? What about the CCJ? This is what I'm most worried about.