Ftb

k1984

Hi there,

Looking for a bit of advice (again)

We've decided to buy our first house in september 2009 - that gives us a few months yet to save more towards a deposit and more time to look and for the prices to hopefully go down.

I have a couple of questions re getting a mortgage however.

1) I pay £160 per month for my car on a 3 year PCP deal. I have 11 months remaining which means in feb 2010 i can pay £4k to keep the car, hand back or start again. I wont have the £4k to pay so I will start again however by that time i will have a mortgage - will i be able to get finance on a car??

2) Over the past 5 years I have been late with a couple of credit card payments (not concecutive months). My most recent was in december when i was late with 2 payments although on checkmyfile.com these look like they are recorded as missed payments. will this affect me getting a mortgage?

3) Once we get a mortgage will finance be hard to get for the likes of house hold items ie sofa, kitchen products etc?

thanks,

K

david29dpo

I would say your chances are not good but it depends on your income and deposit.

pinkshoes

I think you're going about this the wrong way. All I read is "finance finance finance" when you should be thinking "save save save"!

What sort of house prices are you looking at, how much do you have saved, and how much do you earn?

The good mortgage deals only seem to be available for those who have a squeeky clean credit rating and a 25% deposit at the moment...

Regarding the car - why don't you just buy a small second hand car for £1000? You could get something reasonably reliable for that, and then won't have the monthly payments.

Regarding the household items - you certainly shouldn't be thinking about taking a loan to pay for these. How about beg, steal or borrow? Try Gumtree or freecycle for your furniture.

SwissLe

A mortgage when run well, not missing payments etc, should only increase your credit rating. When you make a payment each month your lender should record it on your file and therefore show other lenders you can manage your debt well.

The current 'late' or missed payments (same thing, you missed your payment date) will have an effect on your ability to obtain a mortgage with some lenders - especially at the current time. If you are serious about getting a mortgage and have a decent deposit then you need to speak to an IFA for advice.

As another poster pointed out the way you are thinking is only asking for trouble. Save for longer in order to purchase those household items before getting the pressure of a mortgage. There is really nothing wrong with car finance, but as long as you can afford it - at £160 a month the car can't be that high in value, are you sure it's going to be actually worth the balloon figure at the end and ensure it's not worth just handing it back to start again.

bobbadog

Hiya - we're FTB's who've exchanged, waiting for completion... with regards to credit, on Sat we went and got a 0% card for Homebase - it's 6 months interest free credit (we're buying sofas from there and clearing it when we get our rental deposit back) - they gave us a limit of £1500 straight away, even though we've got credit and now the new mortgage presumably appearing on our credit files. Best of luck. x

border_collie

bobbadog wrote: »

even though we've got credit and now the new mortgage presumably appearing on our credit files. Best of luck. x

Your new mortgage won't appear on any credit files yet. I hope you get your rent deposit back in full. My daughter once didn't.

Robert_Sterling_3

K1984

If you miss payments on relatively small debts this does not bode well for paying higher debts. e.g. Mortgage payments.

k1984

Hi there,

thansk for the reply.

We would be looking at a mortgage of about £150k, 15% deposit. As a combined income we earn £48000 jusr now but that goes up by £3k per year. Our jobs are extremely safe (teacher and emergency services).

Theres never been a problem with direct debit payments on my file, its only been with credit cards where ive been mixed up with the date and paid it online as soon as i remembered. (i know they dont say, oh its ok - he just got confused)lol.

thanks,

K