FTB in a pickle

This may be a long shot but it would seem that you are a helpful and knowledgeable bunch!!

Here's my predicament....

I'm 30 with not a penny in savings. I have an old CC which I defaulted on years ago and am still paying off (had long argument with them about repaying hence the amount of time to pay it off!!!). The balance on that is app £1,200.00. I earn app £16.5K and am currently renting, paying out app £400 per month to live in my bedroom!! The living situation is becoming unbearable and I am sick of people saying "how much - you could be paying less on a mortgage each month". I have never had any CCJ's etc but I do know I don't have the best credit history. I have rented since I was 18 (I know - should've bought then!!) and have never once not been able to pay my rent/bills. I would absolutely love my own place and right now, yes the sensible option would be to clear my debt but if I do that, it'll take me about 6-10 months to get someway to getting on my feet financially and I can't bear that long where I am living. :mad: I also have a student loan which is being repaid at the current monthly rate but the balance on that is app £8K.

I'm afraid to enquire with BS or brokers etc as to what my options would be as I fear it'd just be a big fat no - you're financially flawed!! Can anyone enlighten me as to what mortgage options may be out there for me?? :o

Comments

  • AndrewSmith
    AndrewSmith Posts: 2,871 Forumite
    Hi Baby cakes and welcome to the forums,

    Any professional broker would never simply give you a 'big fat no'. Honesty is always the best policy and, although it may not be what you want to hear, you would at least get a definitive answer as to where you stand. Also the broker may be able to offer further advice on such things as shared ownership etc which may allow you to get onto the property ladder without the need for a large mortgage.

    I would suggest finding a local broker to you who has a good reputation (ask around, someone will know a good broker I assure you).

    Explain your situation fully to them and take on board whatever advice you are given.

    I would warn against accepting advice from 'so-called' professional brokers you may received unsolicited PM's or emails from as a result of posting on here.

    Do your own research into a broker you feel comfortable using, and who ideally you can meet face to face.

    Hope this helps

    Andy
  • I couldn't agree more with Andy, I'd also mention that many brokers would see you as a cash cow. You appear desparate to move and may be tempted to take the first yes you find.

    Your options with no deposit are limited but an honest local broker will be able to talk you through the options.
  • :beer: Thanks guys for your help.

    I have now made an appointment with a local place - I think they'll be able to at least advise me on what's best! I'm not sure if they are "brokers" - (I'll ask when I see him!) but they are authorised and regulated by the FSA and will give me free independant mortgage & financial help, apparently!!

    Barney088 I know what you mean when you say I'm desperate to move and could be "tempted" by the first yes I find. To be honest, being new at this is making me incredibly cautious - all the terminology etc is baffling me - so if someone were to offer me a mortgage tomorrow, I'd probably be wary more than anything else! Like I said, at the moment I'm expecting to either be turned away at every hurdle or worse, being offered something completely ridiulous with sky-high fees etc attached!!!

    I will no doubt be back to pick your brains in the future!!

    Thanks again - I love this website!!!!! :j
  • the issue as far as i can see it is this £400 you pay for your 'bedroom' at the moment - where are you looking to buy / how much would a property cost you in that particular area??? - you wont get too much of a mortgage for £400 per month - is this your limit?

    I've been through mortgage finding recently myself, the best (And most common advice) is to clear any debts you have - as the lendors will take this into account and lower the amount they'll lend you to reflect that... or at least, show a regular pattern of paying off your debt???
  • Hi Village Life,

    £400 isn't my limit - this is the amount which I pay each month in rent and like I said I'm always being told I should get a mortgage. The property prices vary and obviously I'm not looking at anything which is out of my price range. I am currently paying off my debts, up until March/April though, my monthly wage is committed to things like old CT bills (which the Council took 18 months to organise and the bill hit me over Xmas!!!) dentist etc. Once these immediate debts are cleared I can start hammering my old CC and clear that over 3/4 months. If I do it the sensible way - it'd take me a year/18 months I think to get on my feet and get a good deposit but in terms of my sanity I can't wait that long!

    I'm just getting very impatient because where I live, I'm paying my landlord's mortgage (she lives there too) and I'm restricted to how I live there because I am the tenant!! I am looking to get out ASAP anyway but really really don't want to keep renting - not so much because of the money issue - because I don't want to keep moving!
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