Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • TriggerHappy
    • By TriggerHappy 17th Apr 17, 8:46 PM
    • 9Posts
    • 0Thanks
    TriggerHappy
    Planning ahead...
    • #1
    • 17th Apr 17, 8:46 PM
    Planning ahead... 17th Apr 17 at 8:46 PM
    Hi,

    I've basically made a hash of my life up until about 4 years ago by running up debt I couldn't afford. That is all in the past now, I've been on a Step change DMP all this time and now I'm starting to save after having paid everything off!

    So far I have a mobile phone which I pay monthly by DD, and also pay my rent and Council Tax by DD. I have savings but they're work place schemes (share save, share matching type stuff) and although I currently save £480 pcm I'm hoping to start saving a further £220 (so rounding up to £700) within the next few months...

    I have 4 defaults which are settled and will drop off my credit file October 2019ish but I do have AP markers on my file from Vanquis, the last one being Feb this year...

    My plan is to save for the next 5 years and use whatever I have after this time (neatly taking me to my 45th birthday) to either buy somewhere cheap and cheerful in a city I can afford or use it as a deposit for a house here in York...

    In theory, after 5 years I should have a pot in the region of £45-50k...

    My main concern is to not be stuck using my pension (which is also in hand so no worries there as I'm saving £600 pcm inc. my employers contributions) as that would be a nightmare...

    So, any thoughts? Can you see any pitfalls with my plan? Am I likely to be in a position to even get a mortgage after 5 years? I just want to use the next 5 years to put myself in as good a position as possible

    Thanks!
Page 1
    • Lilla D
    • By Lilla D 17th Apr 17, 9:02 PM
    • 238 Posts
    • 109 Thanks
    Lilla D
    • #2
    • 17th Apr 17, 9:02 PM
    • #2
    • 17th Apr 17, 9:02 PM
    Hi, your plan sounds good. If you stick to it and keep your credit history clean of late payments, APs, etc., then in 5 years' time there should be a good chance for a mortgage. Based on the current situation, not every lender may be able offer a mortgage and you may need to put down at least 15% deposit, so your scoring by the chosen lender is not too strict, but in theory you could get a mortgage.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ACG
    • By ACG 17th Apr 17, 9:48 PM
    • 15,077 Posts
    • 7,621 Thanks
    ACG
    • #3
    • 17th Apr 17, 9:48 PM
    • #3
    • 17th Apr 17, 9:48 PM
    If you had 10-15% now, I reckon you could do it.
    In 5 years time you should be fine.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • TriggerHappy
    • By TriggerHappy 18th Apr 17, 6:08 AM
    • 9 Posts
    • 0 Thanks
    TriggerHappy
    • #4
    • 18th Apr 17, 6:08 AM
    • #4
    • 18th Apr 17, 6:08 AM
    Hiya,

    Cool, thanks for your reply. It's much appreciated as I'm in a decent place but in my head there's always those nagging doubts lol...

    Not allowing for increases in property (which I have no idea about what it would be in 5 years time) then in theory if I went down the mortgage route then I should have about a 25% deposit.

    Out of curiosity, does where I have my savings matter? I.e. If I wanted to try with Nationwide for example (my current account provider) should I try to have the money in one of their savings accounts for 6-12 months before trying or doesn't that really matter so long as I can evidence where it's come from?

    Thanks again
    • TriggerHappy
    • By TriggerHappy 18th Apr 17, 6:09 AM
    • 9 Posts
    • 0 Thanks
    TriggerHappy
    • #5
    • 18th Apr 17, 6:09 AM
    • #5
    • 18th Apr 17, 6:09 AM
    Hi

    That's really encouraging thank you I'll ask you the same as I've asked Lilla D above;

    Not allowing for increases in property (which I have no idea about what it would be in 5 years time) then in theory if I went down the mortgage route then I should have about a 25% deposit.

    Out of curiosity, does where I have my savings matter? I.e. If I wanted to try with Nationwide for example (my current account provider) should I try to have the money in one of their savings accounts for 6-12 months before trying or doesn't that really matter so long as I can evidence where it's come from?
    • ACG
    • By ACG 18th Apr 17, 8:55 AM
    • 15,077 Posts
    • 7,621 Thanks
    ACG
    • #6
    • 18th Apr 17, 8:55 AM
    • #6
    • 18th Apr 17, 8:55 AM
    Potentially yes. 5 years is a long time away. Do whatever is financially best then in 3 years look to reassess. Criteria changes all the time, so the best lender for you today may not be tomorrow.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • sammyjammy
    • By sammyjammy 18th Apr 17, 9:15 AM
    • 4,129 Posts
    • 4,472 Thanks
    sammyjammy
    • #7
    • 18th Apr 17, 9:15 AM
    • #7
    • 18th Apr 17, 9:15 AM
    Is there a particular reason why Vanquis didn't default you? You may be able to complain about that and get a back dated default meaning removal of the AP markers.
    "You've been reading SOS when it's just your clock reading 5:05 "
    • trailingspouse
    • By trailingspouse 18th Apr 17, 2:28 PM
    • 2,044 Posts
    • 2,843 Thanks
    trailingspouse
    • #8
    • 18th Apr 17, 2:28 PM
    • #8
    • 18th Apr 17, 2:28 PM
    Bear in mind that in 5 years' time you will be 50, and a standard 25 year mortgage will take you to 75 - which the lender may be unwilling to do, and which indeed you may not want to do yourself.
    • TriggerHappy
    • By TriggerHappy 18th Apr 17, 7:03 PM
    • 9 Posts
    • 0 Thanks
    TriggerHappy
    • #9
    • 18th Apr 17, 7:03 PM
    • #9
    • 18th Apr 17, 7:03 PM
    Hi AGC,

    Thanks for the reply. Potentially I may not even go down the mortgage route - 5 years is a long time and I'm not precious about where I live especially, my main aim is to have somewhere to call home should I need it and if I bought somewhere cheap and cheerful then I may even find myself renting it out until I need it...

    I really just want to put myself in as good a position as possible to achieve my long term goal
    • TriggerHappy
    • By TriggerHappy 18th Apr 17, 7:05 PM
    • 9 Posts
    • 0 Thanks
    TriggerHappy
    Hiya,

    Dunno really... Vanquis has been quite close lipped about the whole process to be honest. To give them their due they have played ball with my DMP from day one and have never chased or hassled me which was great but now it's sort of hanging over me like a black cloud.

    Maybe I'll give them a buzz and see what their response is.

    Cheers
    • TriggerHappy
    • By TriggerHappy 18th Apr 17, 7:08 PM
    • 9 Posts
    • 0 Thanks
    TriggerHappy
    Hi,

    No, sorry I think I've confused you. I'll be 45 in 5 years time. so was thinking I'd see if I could get a mortgage over 20 years.

    But, you're right that it's something I need to consider carefully - hence the possible option of buying somewhere outright in a less desirable location and then saving for either a future move or just having a more comfortable future generally...
    • Lilla D
    • By Lilla D 18th Apr 17, 10:44 PM
    • 238 Posts
    • 109 Thanks
    Lilla D
    Hi, just seen your question above. In my experience it does not really matter where you keep your money as long as you can evidence the build-up of the deposit. However, it is worth re-assessing the situation from time to time, so you can potentially earn some interest as well as take advantage of a scheme that may become available for home buyers in the future.

    Re the potential term, most lenders tend to accept applications up to the age of 70, so in 5 years' time you could still potentially have a 24-25 year mortgage.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • sammyjammy
    • By sammyjammy 19th Apr 17, 9:46 AM
    • 4,129 Posts
    • 4,472 Thanks
    sammyjammy
    Hiya,

    Dunno really... Vanquis has been quite close lipped about the whole process to be honest. To give them their due they have played ball with my DMP from day one and have never chased or hassled me which was great but now it's sort of hanging over me like a black cloud.

    Maybe I'll give them a buzz and see what their response is.

    Cheers
    Originally posted by TriggerHappy
    I'd post on the debt free wannabe board first and get some advice. Some of them really know their stuff.
    "You've been reading SOS when it's just your clock reading 5:05 "
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

118Posts Today

2,383Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin