Mortgage rejection

AnnaV

We need a 25% deposit!

Wasn't even aware there were still 99% deposit mortgages left. Even 90% are very difficult atm.

smileyx

Thanks for all your comments...

Maybe it is a blessing in disguise after reading that article... the only reason I wont be able to save a deposit is because I am already paying £500 rent a month... plus bills and food which amount to £1150 per month. If i lived at home fine but I am 25 yrs of age and moving back to the parents just isnt an option. We both have cars on finance which amounts to another £500 a month between us. Then theres petrol ect. The math is we could afford the mortgage which would be £620per month. We could save £200per month... however, thats 5yrs almost for a 10k deposit. My partner is currently in the process of getting rid of his car which would free up £270 per month... and mine is paid in 20months.

I am not oblivious to the fact we both should have never have got cars on finance, I should have stuck with my little shed on wheels... at the time I just didnt realise how difficult it would be to get on the property ladder

CLAPTON

-get the address removed if possible
-get a CC for your partner and use it regularly for normal purchases but pay in full each month... this will improve his credit rating ()but don't be tempted to overspend on it)
-stop using the overdraft... that is now seen as being in financial trouble and/or unable to manage financially.
-make sure you pay more than the minimum on all the CC even if only by a small amount as this is recorded on credit reports.
-make a proper budget and find out where all your money actually goes
try http://www.makesenseofcards.com/soacalc.html

with 50k coming in clearing the CCs shouldn't be too difficult

AnnaV

smileyx wrote: »

I just didnt realise how difficult it would be to get on the property ladder

Chin up!

You're only 25. Enjoy life, save what you can. Learn from your mistakes.

My DH and I are 31, with one child and one on the way, and have just saved enough, but renting has been fine - freedom to move easily, explore areas, follow jobs. Someone else to pay the plumber :T

We're now in a position to buy and will be able to get somewhere we can stay for next 6-10 years. And finally put up shelves! :rotfl:

Consumerist

If you really want to pull out all the stops for a year then you could take a trawl through the Debt-free Wannabe forum to see what can be done to make every penny count when it has to. In your case, of course, it will be a voluntary excercise but if you really are sick of renting . . .

smileyx

Thankyou Anna, I suppose there is that... suppose I best get saving!!

smileyx

Thanks consumer... I will be sure to take a look there... it's not going to hurt to start saving. I think realisation has hit... maybe no mortgage untill approx 3 yrs time when I have no debt and a fair few thousand saved!! x

ManicMum

If you are only 25, I wouldn't sweat it. My bro is 37 and his OH 38 and they still rentiing, just waiting til market bottoms out. In meantime, they must have saved massive deposit with incomes similar to yours.