First Time Buyer

retnox

Hi,

I am 23 and currently earn £30,000.

I have £7000 currently saved for a deposit, and want to buy a house in the first quarter of 2009.

My outgoings are currently around £300/month (food-fuel-rent) so everything else I take home is going into the deposit pot.

A few years ago I wasn't sensible with money getting into a fair bit of debt (~£6000). This is all now paid off. However, my credit file shows that in 2006 I made 2 payments 2 months in arrears. It doesn't show any defaults though.
Will this affect my ability to get a mortgage?

Second and final query: when should I start applying for a mortage - when I have £10,000 saved (i.e. the amount I wish to commit to a deposit); or should I start applying now?

Thanks for any insight/thoughts you can offer.

robin_banks

Look at properties and decide what type suits you (I'd avoid flats if I were you) decide on area, cost etc, views everal properties before you even think about an offer, only then do you apply for a mortgage

Radiantsoul

retnox wrote: »

Hi,

I am 23 and currently earn £30,000.

I have £7000 currently saved for a deposit, and want to buy a house in the first quarter of 2009.

My outgoings are currently around £300/month (food-fuel-rent) so everything else I take home is going into the deposit pot.

A few years ago I wasn't sensible with money getting into a fair bit of debt (~£6000). This is all now paid off. However, my credit file shows that in 2006 I made 2 payments 2 months in arrears. It doesn't show any defaults though.
Will this affect my ability to get a mortgage?

Second and final query: when should I start applying for a mortage - when I have £10,000 saved (i.e. the amount I wish to commit to a deposit); or should I start applying now?

Thanks for any insight/thoughts you can offer.

It is doubtful the arrears will have any effect.
You should apply when you have the deposit, I think your deposit is likely to be quite low in the current climate and you might struggle to get a mortgage for more than £100k.