I've completely messed up my chances of buying a house, any advice appreichiated!

flea72

no, you are still financially immature. if you think inheriting a deposit and subsidising your bf makes you a good candidate for a mortgage

F

Eric1

jellyjelly84 wrote: »

...not wanting to rent for another 2 years is not a reluctance to defer gratification, but I pay £550 PCM to live in a flat, where as a mortgage on the house we would love to buy would cost me £280, why should I pay someone else's mortgae when I could be paying my own and putting the difference aside for a rainy day?

So £170 a month minus interest earned on your deposit is the price you'll pay for your past mistakes, for 2 years.

jellyjelly84 wrote: »

..one company (kingsley or kingston or somthing) would only offer me a mortgage if the house was more that £90k (it isn't) and another would only offer us a mortgage if we put down £30k, with an interst only mortgage of 8%...humph, we can afford the £30k, but then we wouldn't have any money to do the house up...

But you are prepared to pay 8% interest on a loan for the same 2 years.
How much is that?

mlz1413

Hi jelly,
I'm assuming your £280 v £550 is IO only on the loan you need v current rental cost.

I think you would be better comparing the loan repayments you would need if you didn't have a lump sum (which was inherited) ie 75% -90% cost of house on IO.
I would stick to IO figures as this is effectively the same as renting - you never own it.

When you are in a better position to buy always look at the repayment mortgage cost as this is the only way you will ever be guaranteed to own your home.

neas

flea72 wrote: »

no, you are still financially immature. if you think inheriting a deposit and subsidising your bf makes you a good candidate for a mortgage

F

totally agree.

All in all sounds like if you hadnt go the inheritance you would still be in a similar downward spiral into more debt.

The credit card and mortgage companys have their processes involved for a reason. In the past you have defaulted majorly twice.... once 4-5 years ago and now just lately. Regardless of how much deposit you have you would be seen as riskier than someone with good credit. I'd get a credit card and work to increase your credit rating for two years.

Also try and save more money toward deposit. Sorry if its not what you want to hear but thats the truth.

CloudCuckooLand

Even contemplating an 8% interest rate at this point in time confirms your continued financial immaturity.

themull1

I doubt that you would get an interest only mortgage.

JimmyTheWig

I can imagine the frustration at not getting a mortgage right now.

Two things that might put this into perspective...
1. How old were your parents when they bought their first place? Older than you are now, I would guess.

2. House prices are pretty much staying still at the moment. The biggest problem with buying later rather than sooner is that prices tend to go up and you can no longer afford what you could have afforded. But as I say, that's not the case at the moment.

jellyjelly84 wrote: »

Any adice how I can improve my credit rating? Everything is paid off now, so is it a case of just waiting

It depends on how disciplined you think you can be.
The worst thing you could do would be to add another default to your list. That or run up another bill that you can't pay or squander the inherritance on stuff you don't need.
So one option is to just wait. You could do a lot worse than this.

But if you can be disciplined then I suggest getting a credit card (or using an existing one if you have it) and use it each month. There are two golden rules if you do this...
1. ONLY use it for things that you can afford, that you would have bought anyway if you weren't using the card. Weekly petrol, for example.
2. ALWAYS pay off the balance in full, on time.

If you believe you can follow these two rules then it will improve your credit rating.

saterkey

I usually think things happen for a reason, wait until your bf is on his feet, get christmas out of the way, investigate ways to get your credit rating down.

There will be other houses, imagine if you lost your job suddenly, the security of the inheritance will be gone, a massive mortgage and two people without jobs. You could lose the house and your money in one foul swoop.

Although you have paid all your debts off which is very commendable, there must be a time when you had everything you wanted on credit, had right there and then when you wanted it. Now for once you have to wait for what you want, which is a life lesson for us all i think.

I wish you a happy peaceful christmas, im sure you will be in the house sooner than you think, if not that one im sure a better one.

Julie

dizziblonde

I had to wait till the minor financial mess I'd gotten myself into as a student worked its way off my credit file.

Arthritic_Toe

jellyjelly84 wrote: »

...
... I have recently defaulted on another account, which we be on my credit report for another 6 years...

I mean...really... If you owned the bank, would YOU lend you the money?