Is there any hope for me?

MissMuppet

Hi,

I'm renting at the moment but would love to get on the property ladder in the next year or so... At present I don't have a deposit and I do have quite a lot of debt to pay off! I don't have any CCJ's but I think I may have a couple of defaults. The flat prices I have been looking at are around £130,000, the very lowest is £119,000 in this area, my salary is £22,000.

Do I have any hope at getting a mortgage? I'm nearly 29 and I really need to settle down somewhere without throwing my money away on renting!

Any advice would be appreciated...

Jo

MortgageMamma

Hi there

With defaults you will struggle to get a 100% mortgage for what you are plnning to borrow. It would also be a tight stretch on affordability. I would advise that you do the best you can to clear your debts and pay off your defaults if you havent already, this will improve your chance of getting a 100% mortgage. If you are looking a year or so down the line it would eb a good idea to start harvesting away as much money as you possibly can. Even if you do get a 100% mortgage next year you need money for legal fee#s and broker/lender fee's as well.

Be patient and plan properly, and all will come good in the end!

HTH
MM

Robert_Sterling

Thing are not looking too good at present.
Perhaps it would help if you started by clearing your prsent debts.
Perhaps you should also consider shared ownership in due course.

MissMuppet

Thanks for your advice, I realise my debt isn't all that good but I can see no end to it... at the moment I am paying back the minimum on my debt and can't really afford much more when I have high rent to pay!

Do you know of any places that do 100% mortgages so at least I can speak to them and see where I'd stand?

Thanks!

MortgageMamma

Hi Miss Muppet

If you really feel you need to buy then the best bet is to see a broker and let them assess the scale of your credit problems and if you can be helped. I could name 100% lenders but would not be comfortable doing so unless i knew the current position with your credit files. You can get these by going to https://www.experian.co.uk and https://www.equifax.co.uk. Just a note of warning. do not go applying online directly for a 100% mortgage until you are certain you fit the lenders criteria. If you have lots of credit searches done and are declined by other lenders it can trash your credit rating in the short to medium term.

HTG

MM

Careful_girl

Why is your rent so high Muppet? Is there a way you can be a meanie for a bit with things? You seem to be clearing it slowly you just need to be a maniac meanie perhaps? Have you done all the budget stuff?

MissMuppet

I haven't done a credit check for a while but the last one I did didn't show all my debts on them which I am confused about... my biggest loan wasn't with equifax or experian!

My rent probably isn't that high, it could be a lot worse for the area but I'm single and previously I am always lived with a partner so it just seems to take all my money...

I'm saving for a holiday at the moment as I've not had one in over 6 years, but after July I am going to knuckle down and pay my debt off and get myself saving for a deposit on a place of my own!

Thanks everyone...

MortgageMamma

Hi Miss Muppet

Why dont you move into shared accomodation for a while and keep it cheap and cheerful? also, are you aware that the cost of a decent holiday is about half what you would need for a house deposit?

Food for thought?

Good luck whatever you decide

MM

MissMuppet

I can't do shared accomodation, tried it before and I like my own space too much... plus I have a cat to think about! Don't get me wrong I am not struggling with money at the moment, I'm actually enjoying having some for a change... just wanted to see how the land lies with getting a mortgage!

My holiday will be cheap and cheerful too, lastminute deal to Greece probably!

Thanks for your help!

MortgageMamma

Have a nice holiday! I've done a few late bookings to corfu. fantastico!

Careful_girl

I am sure you will get a good deal -those cheapie flights really do work and you can get really cheap fares to the airport etc.
I agree with you wholeheartedly that buying property is the best thing to do. I was about to rent again but I realised it would cost more to rent than pay a mortgage. I know it is awful getting the deposit and you have got your debt but I encourage you to be mean. (I am quite a kind person really). You are part of this fab bunch on this website and I am sure that I am telling you nothing new. My only way of sorting myself out was:
Get an extra job-working in a pub means you can socialise whilst getting paid. I did babysitting for an agency (I am a teacher) and I got fed and paid to do my marking or watch their TV. Nannying was even better. Have you thought about a working holiday?
When you go out, offer to drive. Everyone loves you; you get to choose when you want to go home and you can drink water all night for free!! In the morning you are wide awake and looking fab. Nobody can persuade you to drink because you can't.
Don't ever get cash out. You can't fritter away anything. I use my moneyback mastercard for everything; not only do I get a list of all my purchases each month but I earn a little bit back.
Find all the free parking places in your town and never pay for parking.
When you get your house buy the worst one in the best place, do it up and take in a nice lodger. Students are good-they often go home for weekends and holidays!!
Don't use a cattery! Thats waht friens and family are for or set up a swap arrangement with another cat owner.
Can't think of any more.
Hope that helps!