Not so good.

This would depend on the length of time since discharge and the LTV required. You would normally be looking at no more than 70% LTV for something like this at a rate well above 6 or 7%.

Mortgage Specialist,

Have you managed to obtain mortgages for people that have been discharged from bankruptcy recently, whats the market like for this?

Being in debt management doesn't stop you getting a mortgage per se, provided you have run it in a satisfactory manner. I have done mortgages for people with high street lenders in the past where the client haas been in debt management, so that's not as big a factor as you might think.

They do take into account the ful amount of debt and hold it against you though, so it is unlikely that you will be able to get a mortgage for a property of the value you are considering on the incomes that you have. Perhaps scale back your plans a little for the time being....

You would need your income to get a mortgage for that price of property and even then with no debts and a very good credit rating you'd only just earn enough between you. It would make much more sense financially to contact your creditors with an offer to settle the debts at say 40% of their value and use some of your girlfriends savings to do that. You'd still have enough left for a 10% deposit and it could be a couple of years before the housing market picks up again (depending on where you live) so you won't be missing out on equity gain.

If you don't want to do that then you need to revisit your income and expenditure and start paying more back to your creditors to reduce the payback period. You will end up with interest being charged again but there is no way that they will freeze interest for 13 years so it is going to happen at some point anyway. Your girlfriend sounds like a demon saver so why not sit down together and draw up a joint budget that involves some cutbacks but enables her to save more and you to increase your debt repayments ?

You need at least a 10% deposit (plus the money for legal fees, surveys and stamp duty) before you can even think about applying for a mortgage. Even then I doubt you'd get one as your credit rating will be poor and they will take into account your debts when working out how much they would be willing to lend you.

Buying might seem like a better option but you need to consider how much the mortgage would cost when interest rates are back to a more normal rate and unless you can afford a repayment mortgage you would just be renting from the bank anyway. Also don't forget about the need to put something aside each month to cover the replacement of things that you don't have to worry about when renting (boilers, kitchens, bathrooms, washing machines etc) and buildings insurance which you won't be paying now.

Concentrate on getting the debts cleared and then save for the deposit. By then you should have a better credit rating and access to normal mortgage rates.