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  • FIRST POST
    • scottvsaunders
    • By scottvsaunders 12th Jun 17, 9:22 PM
    • 4Posts
    • 2Thanks
    scottvsaunders
    Am I really trapped in social housing?
    • #1
    • 12th Jun 17, 9:22 PM
    Am I really trapped in social housing? 12th Jun 17 at 9:22 PM
    Hey,

    I wanted to see if anyone could give me some advise as we seem to be in a bit of a grey area within the housing market.

    Basically we live in a Council property and are desperate to buy a new house, I have a full time job and have a very good job thanks to a lucrative commission structure and earn over £80K ever year. The issue we have is that my credit rating is pants thanks to defaults gained 4 years ago when times were not so good. These debts are now paid but still showing on my credit file and stopping me from getting a mortgage - even trying to do the "right to buy" is a dead duck again due to credit rating. We cant go for private renting as the leases are not long term and I have a large family meaning I am stuck in social housing.

    When the local council brings in loss of subsidised rents for high earners we will be paying alot more and have no where else to live.

    Am I missing something or is there really nothing we can do other than put up with it till the defaults start to drop off etc ?

    Cheers
Page 1
    • Pixie5740
    • By Pixie5740 12th Jun 17, 9:23 PM
    • 10,385 Posts
    • 14,223 Thanks
    Pixie5740
    • #2
    • 12th Jun 17, 9:23 PM
    • #2
    • 12th Jun 17, 9:23 PM
    How much of a deposit have you saved? Have you been to see an independent mortgage broker to discuss your options?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • scottvsaunders
    • By scottvsaunders 12th Jun 17, 9:28 PM
    • 4 Posts
    • 2 Thanks
    scottvsaunders
    • #3
    • 12th Jun 17, 9:28 PM
    • #3
    • 12th Jun 17, 9:28 PM
    Hi,

    I have yes, they took one look at my credit file and politely told me to "do one"

    £15K deposit
    • hammy1988
    • By hammy1988 12th Jun 17, 9:29 PM
    • 26 Posts
    • 15 Thanks
    hammy1988
    • #4
    • 12th Jun 17, 9:29 PM
    • #4
    • 12th Jun 17, 9:29 PM
    Yes, I agree, visit brokers and be openly honest about your credit rating. Maybe even who you bank with might be worthwhile as they see what goes in and goes out.

    Is there any way of contacting those who put the defaults on the system (obviously if they are sorted now) and asking them to clear off your record? Sometimes worth a try especially with credit card companies.
    • hammy1988
    • By hammy1988 12th Jun 17, 9:32 PM
    • 26 Posts
    • 15 Thanks
    hammy1988
    • #5
    • 12th Jun 17, 9:32 PM
    • #5
    • 12th Jun 17, 9:32 PM
    I must add, it's not the end of the world living in Social Housing. Many benefits to be had with the cheaper rents and I can't imagine they are going to drop them vastly. Make the most of it whilst in them, and save for a bigger deposit. 15k is not a massive amount for someone with red marks on their credit file. Save save save!
    • scottvsaunders
    • By scottvsaunders 12th Jun 17, 9:32 PM
    • 4 Posts
    • 2 Thanks
    scottvsaunders
    • #6
    • 12th Jun 17, 9:32 PM
    • #6
    • 12th Jun 17, 9:32 PM
    have tried - Lowell , they are all with Lowell (5 of them) :-(

    Been with my bank for 3 years, never been overdrawn and they happily accept the £24 p/month charge for giving me a platinum account but don't offer me any lending facilities at all ...think thats another conversation entirely.
    • scottvsaunders
    • By scottvsaunders 12th Jun 17, 9:34 PM
    • 4 Posts
    • 2 Thanks
    scottvsaunders
    • #7
    • 12th Jun 17, 9:34 PM
    • #7
    • 12th Jun 17, 9:34 PM
    Oh god no - I totally agree there is nothing wrong with social housing at all... just feel that I want to having something to leave to my kids etc ... a little morbid of me I know but thats the way I feel at the mo.
    • Pixie5740
    • By Pixie5740 12th Jun 17, 9:35 PM
    • 10,385 Posts
    • 14,223 Thanks
    Pixie5740
    • #8
    • 12th Jun 17, 9:35 PM
    • #8
    • 12th Jun 17, 9:35 PM
    I'm very surprised that an independent mortgage broker would tell you to "do one" purely due to defaults that are 4 years old. Did the broker(s) that you saw say anything else that would lead to being declined for a mortgage such as too small a deposit or affordability due to your number of dependents?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • hammy1988
    • By hammy1988 12th Jun 17, 9:35 PM
    • 26 Posts
    • 15 Thanks
    hammy1988
    • #9
    • 12th Jun 17, 9:35 PM
    • #9
    • 12th Jun 17, 9:35 PM
    Oh god no - I totally agree there is nothing wrong with social housing at all... just feel that I want to having something to leave to my kids etc ... a little morbid of me I know but thats the way I feel at the mo.
    Originally posted by scottvsaunders
    I know you didn't mean it like that at all, I was aiming it at the financial benefits of living in them. If you have tried clearing the marks then I'm not so sure, hopefully someone a bit more qualified than me than comment on how to tackle it

    Good luck!
    • Glbooth3
    • By Glbooth3 12th Jun 17, 9:41 PM
    • 39 Posts
    • 52 Thanks
    Glbooth3
    I would go to a independent mortgage broker. Be honest and open and they will be able to find you a deal, prob not highstreet with good rates but that can be sorted after paying a fixed rate term....also how much are you looking to borrow and what LTV are you hoping to get?
    • Cheeky_Monkey
    • By Cheeky_Monkey 12th Jun 17, 9:45 PM
    • 1,105 Posts
    • 2,038 Thanks
    Cheeky_Monkey
    I must add, it's not the end of the world living in Social Housing. Many benefits to be had with the cheaper rents and I can't imagine they are going to drop them vastly. Make the most of it whilst in them, and save for a bigger deposit. 15k is not a massive amount for someone with red marks on their credit file. Save save save!
    Originally posted by hammy1988
    £15k doesn't seem very much for someone earning over £80k a year and living in subsidised housing. How long have you been saving?
    • AFK_Matrix
    • By AFK_Matrix 12th Jun 17, 10:19 PM
    • 656 Posts
    • 793 Thanks
    AFK_Matrix
    have tried - Lowell , they are all with Lowell (5 of them) :-(

    Been with my bank for 3 years, never been overdrawn and they happily accept the £24 p/month charge for giving me a platinum account but don't offer me any lending facilities at all ...think thats another conversation entirely.
    Originally posted by scottvsaunders
    I hope you get some serious other benefits for having a £24pm account! I begrudge paying £5 to santander and only because i get money back from them. I would drop that account and put the money towards your deposit.
    • Fosterdog
    • By Fosterdog 13th Jun 17, 6:38 AM
    • 2,920 Posts
    • 5,035 Thanks
    Fosterdog
    If the defaults are from four years ago but now paid off then they should be showing as satisfied which should improve your chances but also it will only be another two years until they are out of the six year timescale for showing up.

    Set a longer term goal of saving a bigger deposit by the time they drop off and in two years you will be in a better position to buy.

    I do agree though that it sounds like more going on here if you have already been outright rejected and only have a 15k deposit on an 80k income.
    • FBaby
    • By FBaby 13th Jun 17, 6:46 AM
    • 15,500 Posts
    • 38,856 Thanks
    FBaby
    We cant go for private renting as the leases are not long term and I have a large family meaning I am stuck in social housing.
    Private rental often start on the basis of a 6 months ast as standard just in case things are not what they seem at the start, but most will either become longer term fixed ast or roll on. I don't understand why you can't look for private rental for a few more years until your credit record improves and you've saved more towards the deposit.
    • Pixie5740
    • By Pixie5740 13th Jun 17, 8:33 AM
    • 10,385 Posts
    • 14,223 Thanks
    Pixie5740
    I suspect the OP has only seen a mortgage sales person at the bank rather than an independent mortgage broker and has therefore not exhausted all avenues to obtaining a mortgage.....yet. In the meantime the OP enjoys the kind of secure tenancy most tenants in the private sector would give their eyeteeth for so for all the OP uses emotive language such as "trapped" his housing situation is actually pretty good.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • AnotherJoe
    • By AnotherJoe 13th Jun 17, 8:39 AM
    • 6,517 Posts
    • 6,933 Thanks
    AnotherJoe
    "Am I really trapped in social housing?"

    No.
    Save up over the next two years (taking advantage of lower rent), building a decent deposit, and your defaults will have gone so you'll get a much better mortgage rate.

    I'd also seriously consider what benefits your "platinum" bank account is bringing, I suspect it's not worth the £24 a month by a long way.
    • Rosemary7391
    • By Rosemary7391 13th Jun 17, 9:36 AM
    • 1,618 Posts
    • 2,802 Thanks
    Rosemary7391
    Spend the next 2 years saving - £15k isn't much of a deposit if you're wanting a large house for a large family. Unless you're very far north. What sort of purchase price are you looking at?
    Me escondo detras de mi lengua... tengo miedo de que me entiendas... pero me gustara que me entendases ¡Ayudame!
    • BrassicWoman
    • By BrassicWoman 13th Jun 17, 9:49 AM
    • 1,209 Posts
    • 4,845 Thanks
    BrassicWoman
    live on the UK average salary of around £28k for the next 3 - 4 years then buy outright with no mortgage; a flat to start if you have to, plenty families live in nice flats

    then 3 - 4years later upsize

    the problem seems to be that you need to stop spending as your deposit is tiny compared to your salary
    May GC £215/£50 (oops)
    April 2016 GC: £24.09/ £20
    • fairy lights
    • By fairy lights 13th Jun 17, 9:56 AM
    • 7,644 Posts
    • 24,899 Thanks
    fairy lights
    Basically we live in a Council property and are desperate to buy a new house
    Originally posted by scottvsaunders
    Who are 'we'? I'm guessing you have a partner/spouse who will also be buying with you, what's their credit record like?
    I find it hard to believe that on a salary of 80k you're 'trapped' in social housing.
    You should be able to save a lot more than 15k for a deposit, you could save 40k a year and still live comfortably.
    • aneary
    • By aneary 13th Jun 17, 10:03 AM
    • 162 Posts
    • 87 Thanks
    aneary
    Who are 'we'? I'm guessing you have a partner/spouse who will also be buying with you, what's their credit record like?
    I find it hard to believe that on a salary of 80k you're 'trapped' in social housing.
    You should be able to save a lot more than 15k for a deposit, you could save 40k a year and still live comfortably.
    Originally posted by fairy lights
    The OP has a large family even at 80K if the family is large (large to me means more the 4 children) depending on the children's ages they may not be able to save half their salary.
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