Terrible News - I feel sick

Housebuyer958

beecher2 wrote: »

Why the desperation to buy now? I really don't get the panic. Save up, settle your debts and rent in the meantime, waiting til your partner has a job. Go onto the Debt Free Wannabee forum for help in cutting back on expenditure in order to through everything at this debt.

If I was selling and someone put an offer in but then retracted it saying they'd rent until they could get a mortgage I'd refuse. I can't see why they'd accept this.

I'm desperate because that's the life I want to provide for my family. You're absolutely right and if it was just about me then I'd never buy anywhere, but my family wants a garden of there own, my kids want to go to a particular secondary school that I need to be in the catchment area for, I'd like to make improvements to house that just doesn't benefit someone else.

An I live in an area which makes no sense when it comes to the cost of living - it would cost me more to rent somewhere round here then it would to pay a mortgage. Also, I currently live in my mother in law's house with her living in a converted apartment downstairs and I am just f**ing sick of it - i'm not too fussed about how much money I make or lose on the property, I just want a better life.

Housebuyer958

BoGoF wrote: »

From my own credit file they stay on for 6 years after they were settled/satisfied.

So if the current defaults are already 5 years old, wouldn't be better to wait a year, then tell the bank to !!!!!! off.............or would that create another record?

Or if I just carried on satisfying their payments, would this mean it would disappear, or would it keep appearing as they update the payment history every month (therefore resetting the 6 years every time?)

GEEGEE8

Erm, tough one.

The default should stay on 6 yrs from the day you settled the default, but I'm not 100% sure as the loan/card or whatever will stay on your file for 6 yrs from the loan/card being settled/paid in full.

Don't know for sure.. My situation is cut and dry really due to my bankruptcy.

HelpWhereIcan

Normally a default or CCJ would stay on your file for 6 years after it was registered so there is a chance that yours will drop off next year. However, if the company who has registered the default keeps updating your file there is the chance that the default will stay on for longer.

The main reason to pay them off would be because a satisfied (paid off) default looks better to a prospective lender than and outstanding one.

A small default or two that is more than 3 years old is normally something that will still leave you with a reasonable choice of lenders but unfortunately £8,000 of defaults will cause you real problems.

You are almost right with the way the Halifax's credit search works. It would normally search the last 2 addresses at AIP and then any 3rd, 4th etc addresses at full application. This can cause problems at full application as it seems to have done in your case.

Your income should be fine for the amount you want to borrow (depending on what other commitments you may have) but you are looking for the top end of what is available based on the figures you have posted.

Your mortgage options are likely to be limited at the moment but be especially careful of some of the 'specialist' brokers who may not look at the high street lenders that hard (although I have to be honest and say I am not sure you will have that much luck with them based on what has been posted so far).

Who do you bank with? They could be worth a shot

Alternatively you will need to get your deposit to around the 30% mark (£67,000) to bring in the lenders who will ignore your defaults.

hope this helps

Good Luck

Housebuyer958

Thanks for that - some great advice

I bank with A&L and have spoken to them - they won't lend enough.

I'll see what the other broker says - I'm kind of coming to peace with it a little but I'm terrified of how my wife will take it - she's absolutely heart set on that house and I feel like I've led her down a road that maybe I shouldn't have bothered with.

I also feel a little bit bad for the seller, they've been really nice to me and they're really nice people - i'm a bit worried about having to tell them although it's not really my problem.

I think I will still offer to rent it from them, as I don't think they are waiting for the money to buy they're new house. They might tell me to f off though.

I think I'll ask my Dad for a loan for 4-5 years (that's the only way he'll agree to give it to me - see above!!). Clear the debts and try again once they all say settled - if that doesn't work then I guess it's a six year wait then

facingthefuture

Good luck housebuyer - whatever happens! I really hope you get to rent and you children at the school you want and I really hope that when houseprices drop again you will pm me with a big smug smile.
(if you check house price crash record for predicting things it has been spot on - if you are in ireland see the property pin. Good to read for european bank info) Remember financial journos read these sites and often quote them for a good reason.

inca_2

The defaults stay on your record for 6 years from the date of default. I know it must be a horrible feeling being declined for a mortgage but you have to weigh up what is more important to you. If the most important things are being in a lovely house in the right area for catchemnt for the school you want then you can still get all of that by renting. It doesn't have to be forever and for the sake of a year would it really be all that bad? You'll still have any of the money left over from the sale and if your rent is less than your mortgage would be then you can use the extra towards your debts. Would probably leave you in a much less stressful position in a year's time when you have the kids in the school you want already and your debts are either gone or much reduced.

inca_2

Apologies, I have jsut realised I'd replied before even reading the second page so some of the stuff I've written has already been covered. Word of advice though, if you decide not to pay anything towards the defaults because it should drop off in a year you could be creating an even bigger problem for yourself. If you end up with a CCJ against your name for it that will stay on for another 6 years and will cause you far more problems than a default. Also, if it's money you owe then why shouldn't you have to pay it back to be fair?

I hope that you get the outcome you want but if you don't get the mortgage then you have two choices, stay put and not be in the area you want, not get the schools you want etc just because you don't want to rent. Or rent for a while and have all of the above things that are so important to you. Yes it won't technically be your house but what do the kids care if someone else owns the garden they're playing in in all reality? If they want a garden etc then as long as they have it they'll be happy.

Housebuyer958

Hi all

Thanks for the words of comfort - unfortunately renting isn't really an option as I moved in with the in-laws to save money and also help them financially. They were all up for us buying somewhere but I can't really go and rent somewhere and pay someone else rent when I could be paying it to them.

The kids will just have to make do, going to statiscally the worst school in the town I live in , where the ofsted reports says that 76% of the children that attend the school have English as a SECOND language. Suppose that's their futures up in smoke.

I've decided I'm going to ask my Dad for a 5 year loan of £10,000 and just pay everything off (at the moment I'm paying £100 p/m on a DMP and if I keep doing that the debts I owe will be cleared in 2021(!). If I ask my Dad I'll be debt free straight away and only owe him money for 5 years for just £60 per month more.

I should be able to buy somewhere just as my kids are grown up and missed out on their entire childhood.

Instead of working hard, paying my bills, taxes and contributing positively to society - I should have just scrounged of the state and been put in a nice council house for about £200 per month like so many other people I know.

This country really is a joke.

ILW

Housebuyer958 wrote: »

Hi all

Thanks for the words of comfort - unfortunately renting isn't really an option as I moved in with the in-laws to save money and also help them financially. They were all up for us buying somewhere but I can't really go and rent somewhere and pay someone else rent when I could be paying it to them.

The kids will just have to make do, going to statiscally the worst school in the town I live in , where the ofsted reports says that 76% of the children that attend the school have English as a SECOND language. Suppose that's their futures up in smoke.

I've decided I'm going to ask my Dad for a 5 year loan of £10,000 and just pay everything off (at the moment I'm paying £100 p/m on a DMP and if I keep doing that the debts I owe will be cleared in 2021(!). If I ask my Dad I'll be debt free straight away and only owe him money for 5 years for just £60 per month more.

I should be able to buy somewhere just as my kids are grown up and missed out on their entire childhood.

Instead of working hard, paying my bills, taxes and contributing positively to society - I should have just scrounged of the state and been put in a nice council house for about £200 per month like so many other people I know.

This country really is a joke.

You never mentioned that before, is this a wind up?