Mortgage but poor credit-help!

[Summersun2020]

Hi, would love some advice from anyone who’s been in a similar situation.
I’ve just turned 39 and recently (ish-3years ago!) qualified as a teacher. Prior to this, I’ve been a single mum to two lovely kids, and had the odd part time job here and there (difficult to manage due to ongoing childcare issues). I’m now in a place of real financial stability for the first time. I have poor credit history due to struggling when my kids were younger. I’m slowly rebuilding it, I have a couple of credit cards from sub prime lenders, however I use these regularly and pay the balance monthly to rebuild my credit score.
I’ve lived in a council house for 9 years and would love to buy it. I’d get a decent discount, and I’d love to make it our forever home. It just feels impossible due to my poor credit history. I’ve no CCJs, and my poor credit/defaults are all over 6 years ago. Anyone been in a similar position and managed to obtain a mortgage? I’ve literally no idea where to start. I realise due to my age I’m limited wrt timescales...don’t want to be tied to a mortgage til I’m 70!
Thanks in advance to anyone who can offer any advice/wisdom

First is your house for sale? If so go to the bank and see if it would be feasable to get a mortgage.If you still have debts your paying off they may be relunctant to led but if you can prove your able to pay off debts and afford a mortgage then they should be ok.

I'm a broker (have been for 18 years) as long as you don't have too many missed payments in the last 2-3 yrs you should be fine.

If your ccj's and defaults are over 6yrs old they won't be on your credit file and won't impact you.

If you're looking at right to buy (rtb) contact the council and get a valuation on the house. You shouldn't need a deposit, but you will need a few grand for legal fees.

If you're not doing rtb, then there are other government schemes that could work got you, but you'll need at least a 5% deposit.

If you want to buy on your own without any schemes you'll need a 10% deposit.

I'd start by speaking to a broker about your affordability, then you'll know what you direction you can move in.

Good luck

Thanks both for your replies! Both really helpful.
Yes nothing as far as I know in recent years, but got rejected for a mobile phone contract about 2 years ago...had 2 credit cards approved in meantime though?
My Experian credit score is “poor” but was previously very poor, so is improving, just feels like it’s at a snails pace 😔

It's easier to get a mortgage than a credit card as the loan is secured to an asset.

Experian are one company out of 3, and they make you believe that you have to have a certain amount of numbers to get any credit, and charge you £14.99 pm for the pleasure. However most lenders use them as a point of reference and then have their own checks.

I've placed mortgages for clients in worse situations than you.

Give it a try, you've got nothing to lose, and everything to gain!

@justtryingtogeton brilliant, thanks so much...I really feel more hopeful hearing that!
So...independent mortgage broker rather than bank? (Sorry I am totally clueless)

Get a copy of your credit report - use credit karma as they are free. Your report should be better on the score by now if its been a long time since you've had payment issues.

[quote Summersun2020]@justtryingtogeton brilliant, thanks so much...I really feel more hopeful hearing that!
So...independent mortgage broker rather than bank? (Sorry I am totally clueless)[/quote]
No worries!

Get your equifax report report, many mortgage companies who help people with credit blips use equifax. The credit companies can report different information. Karma is free, but equifax is 7.99.

There's over 130 different mortgage companies, high street lenders don't tend to be accommodating if your credit is not 100%, and many lenders who can help won't always deal with you directly, so you'll need a broker. Therefore unless you have the time to go through the 1-2 hour process with every lender, I'd save yourself time and speak to an expert who will know where to place the mortgage.

I'm sure someone else will come along and point you in the direction of a free phone based company, but in my opinion ( of course I'm biased). Just because there are you tube videos on how to rewire a house you wouldn't do it yourself unless you're an electrician, you'd also most likely pay an electrician. Therefore, a broker will educate you on the process, take your circumstances and find you the way forward to own your home, there's a lot of work involved and most likely a fee for their time.

Feel free to dm me if you want help.

Otherwise, look on unbiased.co.uk for an independent near you, or ask for recommendations, it's mostly how I meet my clients.

Good luck!