Potential buyer having trouble getting mortgage

julieann64

i am 45 and have 65k deposit for a house and needed to borrow 25k but because i had a default what has now been paid due to selling my buisness and splitting up with my partner so all the money went to the solicitors meaning the bank but a defualt against us because it didnt get paid in time. now i am really struggling getting a mortgage also they have turned me down because i have no credit rating because nothing is goin out off my bank. do you have any advice for me.

PasturesNew

Title should be changed from

"Potential buyer having trouble getting mortgage"

to

"Ill-prepared time-waster viewed my house"

mbga9pgf

Julie, Get a CC, and religiously pay off the balance each month. If you are not on the electoral register, get on it. Dont apply for too many mortgages or credit cards as this is bad for your credit rating. Your credit rating does not account for your savings I am afraid.

Only other advice would be to approach the bank and ask whether due to the circumstances they could remove the default (now they have the money?) and promise you wont do it again. If you have a CCJ it cannot be removed from your credit file. I wrote a nice letter to barclaycard and got 2 late payments removed from my file due to mitigating circumstances. Dont ask, dont get.

Keep saving and move into rented. Things are not going to be rosy for the mortgage market for a number of years yet. Good news is, prices will be significantly lower in a fvew years time, so your 65K will go much further.

brit1234

I'm going to be after a 20-25% discount when I buy. As a ftb I haven't saved a deposit for 6 years to watch it disapear with the comming big price fall. There is a group of use all holding back for these falls and as said ealier the government support for mbank mortgage lending is almost finished so there will be far less money lent.

My advise is drop the price more before buyers see the second part of the crash and hold off.

Milliewilly

brit1234 wrote: »

I'm going to be after a 20-25% discount when I buy. As a ftb I haven't saved a deposit for 6 years to watch it disapear with the comming big price fall. There is a group of use all holding back for these falls and as said ealier the government support for mbank mortgage lending is almost finished so there will be far less money lent.

My advise is drop the price more before buyers see the second part of the crash and hold off.

Good luck - I know a cash buyer with the same philosophy and he has got precisely nowhere by putting in offers of 25% less.

madeupname1

Milliewilly wrote: »

Good luck - I know a cash buyer with the same philosophy and he has got precisely nowhere by putting in offers of 25% less.

I agree with this. For most people their home is the main asset. Therefore it makes absolute sense to do everything you can to get every last penny for it when you sell because there are very few other ways to make that money back. Its different if you a desperate to sell but most people aren't in that situation (at least not yet). The current market has shown that most sellers sit and wait it out rather than just give big discounts.

<sebb>

I dont think you can say across the board that you will always offer 25% off. Some people have widly overestimated their for sale price, and a 25% reduction is actually closer to the right price. Others have a more realistic selling price and a 25% reduction would grossly undervalue the property. You have to look at each property individually.

Eric1

madeupname1 wrote: »

I agree with this. For most people their home is the main asset. Therefore it makes absolute sense to do everything you can to get every last penny for it when you sell because there are very few other ways to make that money back. Its different if you a desperate to sell but most people aren't in that situation (at least not yet). The current market has shown that most sellers sit and wait it out rather than just give big discounts.

So the stand-off continues, as FTBs' deposit is their main asset too
Let's see who blinks first, interesting times

brit1234

Milliewilly wrote: »

Good luck - I know a cash buyer with the same philosophy and he has got precisely nowhere by putting in offers of 25% less.

Well he has got his timing wrong, too early to put the bids in. You need to have the return of negative sentiment to help. We have just ended the bull trap and had our dead cat bounce in the housing bubble. Stamp duty relief is gone, government funding for housing associations is drying up, government buying of bank debts are set to end and interest rates can go only one way and that is up.

Its best for months of falling prices to put an offer in, not now now after prices have only started dropping again.

mbga9pgf

madeupname1 wrote: »

I agree with this. For most people their home is the main asset. Therefore it makes absolute sense to do everything you can to get every last penny for it when you sell because there are very few other ways to make that money back. Its different if you a desperate to sell but most people aren't in that situation (at least not yet). The current market has shown that most sellers sit and wait it out rather than just give big discounts.

Let them sit it out. I am willing to wait till the pea soup is dribbling down their chin and they are in a home before they claw a penny out of my hand for a home they bought at my age for a fraction of the price.

And its a home. Its not an asset. Pick an investment vehicle that doesnt screw the next generation and their children. And they arent getting their money back either. They are multiplying their initial investment by 5, sometimes 15 times the value they put in to it. Greed.

Oh, I think you will find homeowners have had to cut prices30%+ in Greece, Ireland, the US and of course Japan, where, land supply and overpopulation are far greater issues.

They may have chosen to save rather than spend on credit; makes no odds, becuase thats exactly the road that international investors are pushing the UK down.

I had a 25% offer off accepted recently; unfortunately, the seller blinked and I am no longer interested. As Brit points out, prices are now falling again with NO GOVERNMENT MONEY TO SAVE YOU THIS TIME! 2010 will see the start of a slow, drawn out price decline that will last 5 years. Better get used to lower prices and a less luxurious retirement people!