Homebuy direct mortgage

walliss

Hi

I made a appointment to see a halifax mortgage advisor tommorow regarding a mortgage for a property we have seen on the homebuy direct scheme, but am unsure we should attend it now as after entering our income and spenditure on thier website it say we are eligble for upto £45k, but to purchase the house we require £70k.

This is our financial situation at the moment:

Im on £15.5K gross per annum at the moment but this will rise to £21K within the month. I am paying of various loans, credit cards etc. which totals to around £730 per month.
Wifes on £9.5K per annum with no monthly outgoings.
We have no deposit to put down, and are living with my parents at the moment.
I have made up a finacial plan to put forward to the advisor tommorow, which shows we can comfortably make the monthly payments on the mortgage we require.

Do you think its worth me attending the appointment tommorow or is thier other options available to me in aquiring the required mortgage?

walliss

appointments Monday not tommorow. Work nights get confused with days sometimes!

beecher

You could go to the appointment, but with those credit commitments I can't see you getting a mortgage at the moment. £770/month must take up more than £10k of your income - I can't see how you can possibly afford a mortgage on top of that, as well as all the other costs which come with a house. When your income rises, can you put all the extra towards your debt? How long would it then take to clear the debt.

I think you should go onto the Debt Free Wannabee forum for help in dealing with the debt as a first step.

walliss

would they not take into consideration that my wifes salary has no outgoings?and also my salary rising to 21k?

beecher

walliss wrote: »

would they not take into consideration that my wifes salary has no outgoings?and also my salary rising to 21k?

You could go and see - no harm in asking I suppose. How much debt do you have when you count it all up, and what's your credit file like?

walliss

my debts spread over the next 6 years, 3 of the debts clear in 3 years which will mean i will have a extra £220 per month.

beecher

Well, remember the option of going to the Debt Free Wannabee forum for help in getting rid of your debt earlier than that, particularly when you have that extra £6k per annum coming in. What about your credit file?

walliss

credit file is good. It shows a about 3 late payments to barclaycard made 2-3 years ago.

beecher

walliss wrote: »

credit file is good. It shows a about 3 late payments to barclaycard made 2-3 years ago.

Hmm, that adds to your problems really if it is only 'good'. I'd re-assess with a 3 year plan to get rid of all debt, and build up a deposit and make sure you have no late payments over those 3 years.

walliss

I thought this homebuy direct scheme was to help people in my kind of position? i.e no deposit, struggling to get on the property ladder. It doesnt make sense to me that if we have to leave my parents house why I should fork out on renting private for the next 3 years or so, where i will be paying more then what the mortgage repayments would be on the property we have seen. Also I know the current economic climate is bad but i dont see myself as being any more risk to banks then what people with mortgages already are. I have a stable gaurenteed job, whilst many people are doubtful if they will have a job to go when they wake up. It just seems unfair

poppy10_2

Shared ownership is a scam, preying on financially challenged people such as yourself.