Past bad credit rating and buying through shared ownership!

DVardysShadow

scatz wrote: »

[1] As I've hopefully explained above, what need would there be to save if a mortgage is not achievable! What would you save for, a rainy day? We did that and spent it on a rainy day. Since that rainy day a couple of months ago we have saved £700! So you see, we do save just not towards a deposit because it would have been pointless (I'm beginning to sound like a broken record here aren't I). [2] What other major expense would there be to save for?

1. The reason for saving is to make a mortgage and ownership a possibility in the future.
2. Hmm. I would say that ownership would actually be a source of heartache for you

Saving is keeping hold of some of today's resources to deal with the unpredictable in the future. It seems that having recently dealt with debt, you are only thinking of the negative things the future can throw at you, the rainy day scenarios of the gearbox failing on the car. But there are the positive events, like the opportunity to buy a house which you can only take if you have savings.

You'll probably choke on the next bit. Having fought your way out of debt, you have had to adopt a certain lifestyle - congratulations for fighting your way out, but understand that the lifestyle you adopted to get out of debt is the one you need to stick with as a norm if ever you are to escape being a rent slave and it continues till you have paid off your mortgage. You might relax a little bit, but for financial security, any household needs to be doing a load better than merely keeping its budget in balance.

jbal_2

poppysarah wrote: »

Not one listing all the possible reasons - if the OP feels they need telling what they might need to save for then they are lost.

My point was if your not going to say anything then don't say anything, yet you felt compelled to post saying you weren't going to say anything. The OP does save, they have said so plenty of times in this thread.

Seems like people on here, rather than giving advice, are far to quick to criticise or belittle.

On to the original point I've not seen one response that's given good advice as to why shared schemes are a bad idea. I'm interested in this option as I'm in a similar position so would welcome some decent answers giving plus and negative points to the OP's original question. Are shared schemes a good idea?

neverdespairgirl

Back to the initial question, you might want to post on the mortgages board,

My understanding is that very few banks and building socities do mortgages for shared ownership, and the ones that do are quite fussy about good credit records. But I could well be wrong, and the mortgages board lot would know.

scatz

poppy10 wrote: »

Shared ownership is a scam, preying on the financially illiterate such as yourself. Avoid.

If that is not a personal attack then I don't know what is? I will be reporting your post!

BitterAndTwisted wrote: »

Kids going to Uni? Redundancy and consequent unemployment? Injury and inability to earn a decent living? Long-term illness? Separation and divorce? Death of a spouse? Pension?

And I haven't even thought about it very hard at all

- kids have circa £5k each tucked away for their educational needs
- I've been in my employ for long enough to have a decent enough redundancy payout to keep the family for at least a year whilst looking for employment
- Death of a spouse, she's got life insurance as have I
- Pension, we both pay pension contributions (me AVC's)
- Separation and divorce (on a light hearted note) the less savings the better
- both injury and long term illness; I'm an average earner so any savings wouldn't really last that long in any case.....maybe you got me on those points. Have a gold star

jbal wrote: »

My point was if your not going to say anything then don't say anything, yet you felt compelled to post saying you weren't going to say anything. The OP does save, they have said so plenty of times in this thread.

Seems like people on here, rather than giving advice, are far to quick to criticise or belittle.

On a side note I've not seen one response that's given good advice as to why shared schemes are a bad idea. I'm interested in this option as I'm in a similar position so would welcome some decent answers giving plus and negative points to the OP's original question. Are shared schemes a good idea?

Thank you for being on my side but maybe you will also be lashed to the floor because you have done so

People keep mentioning the inability for me to save! If putting away £200-250pcm isn't saving then I don't know what is? Also, how much more plain can I make it that because of the area in which we live, house prices are always going to be way above average yet no lender will take this into account when offering a mortgage. I could save £250pcm for the next 5 years and amass a £15k deposit, that deposit ain't gonna drop the house prices and the lenders are still only going to offer me a mortgage to small to buy suitable accommodation even though my sums quite clearly show that I can afford a higher mortgage even allowing for an increase in mortgage rates!!

Now, has anyone got any advice regarding the questions which I asked without mentioning a deposit or the fact that I'm a useless human being that has no incline of what money is or the fact that I might loose a leg and be in financial ruin.

BitterAndTwisted

"Shared ownership is a scam, preying on the financially illiterate such as yourself. Avoid."




If that is not a personal attack then I don't know what is? I will be reporting your post!

Oh, please stop being either juvenile or asinine! (My opinion) That post was opinion followed by advice adn if you think it's abuse I suggest you post on a forum which is guaranteed to only give you opinions which confirm your (erroneous) position and tell you what you want to hear. If you can find one.

Honestly, shared ownership IS a scam but if you're utterly determined to go ahead and take yourself and your family down into the shark-infested mire then please, go ahead. I can recommend a rather large development going on on my own doorstep if you're interested.

DVardysShadow

scatz wrote: »

poppy10 wrote: »

Shared ownership is a scam, preying on the financially illiterate such as yourself. Avoid.

If that is not a personal attack then I don't know what is? I will be reporting your post!

What BitterAndTwisted says.

Plus, if you go ahead and you get poppy10 sanctioned by the site in some way, are you likely to feel vindicated and go ahead with the purchase? The term 'financially illiterate' is perhaps too strong, but it is in the right direction. When the damage you could do yourself with shared ownership could cost you many thousands, it really is too petty to complain about the hurt you feel from this well intentioned remark.

Errata

People keep mentioning the inability for me to save! If putting away £200-250pcm isn't saving then I don't know what is?

But you state those 'savings' are mostly used for your cars, with perhaps £20 a week left over. That's quite a gap.

scatz

DVardysShadow wrote: »

What BitterAndTwisted says.

Plus, if you go ahead and you get poppy10 sanctioned by the site in some way, are you likely to feel vindicated and go ahead with the purchase? The term 'financially illiterate' is perhaps too strong, but it is in the right direction. When the damage you could do yourself with shared ownership could cost you many thousands, it really is too petty to complain about the hurt you feel from this well intentioned remark.

I reported the post as I felt it was condescending! Nothing to do with the rest of the comments made here, otherwise I'd be reporting all of you wouldn't I?

Lets lay down some facts here;

I have in the past been financially frivolous. I cannot change the past and should I need to pay slightly higher rates then that's the burden I shall have to bear. However, my recent credit rating is only a few points away from 'good' which can only be a good thing as that would be above the national average rating would it not!

We pay all the bills on time, we run two cars (necessary), we feed and cloth our children to the highest standard we can, we can afford family outings once in a while, we can buy what we want and when we want it (within reason), we have money left over each week to be frivolous with otherwise I put a little extra in the savings account.

Having mentioned the above, if because I haven't saved a massive amount of money I am financially illiterate then I fear for the posters true intent. Where is the qualification of such a statement.

I am not a complete fool, I did very well at school, I went down the wrong path (more than some of you may care to imagine) yet I have picked myself up, raised a beautiful family and have a viable option which may enable us to purchase a property.

I'd like to add that the uniqueness of our location maybe doesn't quite fall into everyone's equations towards their advice which I have tried on many occasions to highlight! House prices here will rise and rise because of it, they may fall in your neck of the woods but not here my friends, not here!

My original question was asked regarding my current situation, not a situation that I maybe should be in.

I'm bored. I've wasted most of my day here trying to justify what I shouldn't have to and been subjected to a barrage of 'save, save, save', 'if you haven't then you shouldn't', 'your a financially illiterate person'. I'm sure you all speak from personal positions but please can I have a show of hands from those that are in my situation......because those are the people my OP was intended for and I quote "I suppose we am after some advice from people that may have been in a similar financial situation and that have either been successful or not in the shared ownership route. We see no other way in which we will ever be able to get a foot on the home owners ladder otherwise."
Nowhere did I ask for advice on buying a house outright with a lack of deposit. The question, as far as I can tell, is quite clear.

Jimmy_31

poppysarah wrote: »

You've discovered why you should save money. For a rainy day.

When you want to get on the property ladder you have to also save.

Shared ownership schemes just prop up prices imo. (and if you can only afford say 50%, do you expect things to change for your childrem - will they only be able to afford 10%? Just say no to SO!)

Maybe your income and lifestyle isn't what you need to achieve home ownership.

This may be hard for you to come to terms with at the moment. But why not save up and see how you feel in two years time.

I would take this posters advice, i was in a similar situation to you some years ago, similar as in being priced out of the market due to not having a large enough income to buy and run a home, Deposits were not a problem back then as i could have easily borrowed 10x my sallary with just a 5k deposit (ridiculous i know) i could have gotten a mortgage quite easily during the housing boom or gone the shared ownership way but thought better of it because i wanted a half decent home that was in theory mine from day one and also couldnt bring myself to take such an astronomical amount of debt on via a mortgage and hated the shared ownership scheme anyway because it was just another reason the housing boom kept going.

Ive spent the last few years saving absolutely every penny i could and am now nearly at the stage were i have my full deposit and then i will be working on saving money for the fees involved in purchasing and also 6 months wages put away to fall back on which is an absolute neccessity due to the nature of my work.

During the time of me saving up my deposit we have now reached a stage were the market is falling (I thought this may happen but wasnt sure) so ive decided to stay in the price and house range i was already looking at instead of buying a bigger home because my deposit is already around 40 percent of the cost of the houses im looking to buy so i figure the less i borrow from the bank the quicker i can overpay the mortgage and get it paid off.

The reason ive said all this is to show you the plus side of saving and waiting because at the end of it its going to be a lot easier to get your home payed off in full and save thousands of pounds in interest over the years and eventually have your legacy in place. (This scenario should work if the banks dont start throwing money at people again and cause another house price boom) If you decide to go this route then i will keep my fingers crossed for you that we dont have a repeat of the house price boom ever again, plus i would eventually get to move up the property ladder some day without giving the bank thousands of pounds of extra money for absolutely nothing.

*emmaaa*

I think the reason people are focussing on your ability to save is because, despite regularly putting money away, it still gets spent on emergencies and unforseen circumstances, meaning your deposit fund does not reflect your claimed saving ability. You say that there wasn't any point getting together a deposit sized fund because of lack of opportunity to buy, but surely the deposit-sized fund you could have saved *would* have been a legacy / helped paid for care in your old age? Maybe not a house-sized amount, but still, better than nothing.

Your post just seems to come from an "all or nothing" perspctive, either save like mad and sacrifice the luxuries in order to buy a house as quickly as possible, or live comfortably now, but not put aside the sort of savings that would make a difference for the long term view you're talking about. There is a middle ground. There's nothing wrong in living for now if it's comfortable and sustainable, but I think people are trying to be helpful in pointing out that saving a deposit up may not be as quick and easy as your posts seem to suggest. Better advice may come along once you have shown your situation capable of supporting saving for a deposit, as well as allowing for rainy days and the little luxuries that make life a bit better.

I'm not trying to criticise, I have no idea about your financials other than what you have stated and have limited knowledge of SO property buying. I wish you the best of luck in whatever you decide to do, and heartily recommend that even if you don't buy now, putting a deposit sized amount away over the corse of the next few years will mean if such a situation arises again in the future, you'll be in a lot better position to capitalise on it! :-)