Advice needed for 2 desperate first time buyers!!!

beecher2

dcm3283 wrote: »

Yeah I completely see where you are coming from. On the other side of the coin however we want to get ourselves on the property ladder and invest our money!

You're investing your money at the moment as you're getting interest on it rather than paying interest. House prices aren't about to go sky high and waiting will mean you pay a lower level of interest as your LTV will be lower. Houses are primarily for living in, not making money out of - I think that's something which has been forgotten in the last decade or so.

dcm3283

I understand what you are saying. Well we shall see what the mortgage advisor says on Monday when I see him

Doshwaster

dcm3283 wrote: »

Yeah I completely see where you are coming from. On the other side of the coin however we want to get ourselves on the property ladder and invest our money!

If you are going to have a mortgage around your neck for the next 25 years, waiting another 6-12 months isn't going to hurt you especially if early next year you are going to have a bigger deposit, a better credit score and - hopefully for you - house prices have fallen. Prices tend to fall during the winter anyway as there is less demand.

It's a big decision and you don't want to rush into anything. Mortgage in haste, repent at leisure

GMS

Do not look on a property as an investment, look on it as somewhere to live. Chances are that in the longer term the value will increase, but so will every other house. The increase in value is only realisable if you sell and not buy another property.

As recommended in your previous post you need to see a 'Whole of Market' broker. Your adverse credit is historic so there are lenders out there who would consider it as within their criteria but you may need to lower your loan amount. Some would need you to pass credit scoring too which adverse will affect.

Adding your girlfriend's parents to the mortgage may not be as straightforward as you think. They would need to satisfy criteria too.

Speak to a broker. Give all details and you will get good advice

dcm3283

Again very valid point. we have just had a lot of people telling us that renting isn't the way to go as it is dead money. however we need to move out asap as it is starting to drive us mad! very difficult decisions lie ahead! I've done alot of reading on the internet and there is so much conflicting advise out there!

Cannon_Fodder

dcm3283 wrote: »

In regards to my overdraft, it is only for £100 which i very rarely use. only in the last few days before payday which gets reimbursed in full staight away.

It doesn't matter how little it is used. Using it at all is an indication of poor money management, that the lenders will take note of in their considerations.

Plenty of current accounts offer decent interest under £2.5k, upto 5%. So leaving £100 "float" in the current account is more financially efficient than keeping it in your savings account probably, and avoids you dropping into your overdraft for a few days now and then, too.

When you have £21k in one hand, but drop into debt every few weeks on the other hand, what do you think it says about your priorities?

"The bank gets thought of last, you might take the same attitude to your mortgage payment"...

dcm3283

Thanks GMS. My main worry regarding getting a mortgage is that fact that my last default has only just been settled in June so it obviously quite recent the other two were settled in 2007 and 2008 respectively.

GMS

Just settled but may be possible depending upon when it was defaulted and how much for.
You will get plenty of advice and opinions on here but the oonly way to get an answer is to speak to a broker. That's not a broker wanting business speech, it is the best way for you. If you had a squeaky clean credit profile you could apply to a high street lender. Was your last broker 'Whole of Market'?

Doshwaster

dcm3283 wrote: »

Again very valid point. we have just had a lot of people telling us that renting isn't the way to go as it is dead money. however we need to move out asap as it is starting to drive us mad! very difficult decisions lie ahead! I've done alot of reading on the internet and there is so much conflicting advise out there!

Without wanting to sound harsh and unromantic, if you have never lived together before it is probably a good idea to rent together for a year or so before buying.

Renting isn't "dead money". You are paying for a roof over your head, a place to call home and someone else to worry about maintenance - and an easy escape route if anything goes wrong.

dcm3283

GMS. The default amount was £2300 and was in 2007. The broker that we have seen is an independent, whole of the market yes.

Doshwater. I see where you are coming from.