Wanting To Buy A House

Debt_Free_Chick

in-debt wrote:

I dont have any ccj's but do have some defaults.

Sorry, I've only just noticed this.

With defaults and the need for a 100% mortgage - as you will be borrowing all the money you need to buy the house - then I really think you don't stand a chance.

The defaults effectively tell prospective lenders that you haven't met previous borrowing repayments, so you would be a higher than normal risk. So, a higher risk applicant looking to borrow 100% is unlikely to be successful .... without paying extra interest.

Angela_D_3

PoorDave wrote:

Instead of being borrowed from where they are now (creidt cards or loans, then into payplan), the 33k of debt would be on a mortgage that extended to the "full" value of the house, above the 80k that has actually been used to purchase it, perhaps?

Spot on.

The moral aspect really doesn't come into it when dealing with banks. Is it moral to allow a person on benefits living just above the breadline a credit card at 29% apr, of course not, do the banks deliberately target those customers, yes they do.

barnaby-bear

Angela_D wrote:

Spot on.

The moral aspect really doesn't come into it when dealing with banks. Is it moral to allow a person on benefits living just above the breadline a credit card at 29% apr, of course not, do the banks deliberately target those customers, yes they do.

But you only pay if you don't clear the balance within a month of the statement and sometimes it can be 9 weeks from purchase to payment. It's a bit patronising saying it's immoral to allow someone on benefits a CC and assume they can't use it sensibly. Someone else will argue it's immoral to deny them access to a mainstream payment device and the purchase protections or to assume that people on benefits/low income are too !!!!less or stupid to be able to use credit. Without a credit card it's harder to access online purchasing etc. I had a credit card when I was on £2.14 an hour at 18 in 1994, I didn't get in debt on it and was very useful - spent the next 7 yers on sub-£4k a year and still found it useful. By your morality I wouldn't have been allowed a credit card, how patronising :mad: .

Angela_D_3

barnaby-bear wrote:

But you only pay if you don't clear the balance within a month of the statement and sometimes it can be 9 weeks from purchase to payment. It's a bit patronising saying it's immoral to allow someone on benefits a CC and assume they can't use it sensibly. Someone else will argue it's immoral to deny them access to a mainstream payment device and the purchase protections or to assume that people on benefits/low income are too !!!!less or stupid to be able to use credit. Without a credit card it's harder to access online purchasing etc. I had a credit card when I was on £2.14 an hour at 18 in 1994, I didn't get in debt on it and was very useful - spent the next 7 yers on sub-£4k a year and still found it useful. By your morality I wouldn't have been allowed a credit card, how patronising :mad: .

I'm sorry but you are the exception, I have worked in collections departments the figures speak for themselves.

barnaby-bear

Angela_D wrote:

I'm sorry but you are the exception, I have worked in collections departments the figures speak for themselves.

So why not introduce a criteria like you can only have a credit card if you have grade C or above in GCSE english+maths, thus increasing the chance that 1) the customer can read the details 2) can add up, work out a percentage. It's not income level that causes credit card abuse it's stupidity.

in-debt

Many thanks for your all your reponses which I greatlly appreciate. I just wanted to know what my options where in being offered this property at such a good price.

No way would I ever rush into a purchase and over stretch myself. I would need to know all the factors first.

When this relative mentioned about the house my initial reaction was to pay off all my debts. I would probably have around £7,000 left after paying off everything. I would also be debt free for the first time in years. I suppose then I could apply for a mortgage.

in-debt

Just an update on recent events. We have been to see two different Financial Advisors and both stated that with our income we should beable to afford a mortgage and that they could get us a mortgage even with our adverse credit history.
My partner and I have decided against it as the repayments would be around £602-£650 a month inclusive of all the insurances that you need to go with a mortgage. It would be just be a nightmare and I would not beable to sleep.
We have spoken to the family member and who offered us this property and its now been decided that the house will be sold and that the money will be given to us and I have decided to pay off all my debts.

So hopefull very soon I should be debt free first time ever since being a teenager and I cant wait.

Yipeeee!!! I will even have some spare cash to put in a savings account.

Guy_Montag

barnaby-bear wrote:

So why not introduce a criteria like you can only have a credit card if you have grade C or above in GCSE english+maths, thus increasing the chance that 1) the customer can read the details 2) can add up, work out a percentage. It's not income level that causes credit card abuse it's stupidity.

Staying off topic:
Unfortunately that doesn't mean much, I have friends with PhDs in scientific subjects - ones that require really, really hard sums - that can't cope with budgeting.

PoorDave

Guy_Montag wrote:

Staying off topic:
Unfortunately that doesn't mean much, I have friends with PhDs in scientific subjects - ones that require really, really hard sums - that can't cope with budgeting.

Budgeting = real world activity
PhD graduates = away with the fairies!

(I should add i nearly was one, but saw the light - £££)