Achieving the Impossible (FTB)

gazfocus

I too am amazed that you are on such a high wage, have a massive loan and expect a bank to give you a mortgage without a deposit.

jon557 wrote: »

I have not saved since Uni because I bought a nice car, nice furniture and drilled down on old Uni debts. I disagree with "appalling financial management skills" as I have not even thought about saving money for a deposit before last month. I was sending £800pm to my loan to pay it off quick, I guess I should have been putting it into savings instead - but that’s not good as it costs more in interest. I have a brilliant financial tracking system, a spreadsheet which details every element of my financial life - it's just I haven’t been saving.

So you've bought a nice car, expensive furniture, paid off debt and still you've got an outstanding £12K loan? How is that anything but appauling financial management?

jon557

Its only £12k. These days most people seem to have in excess of £20k. Young people cannot get onto the ladder, 9 out of 10 young people I know have a small amount of debt and most certainly do not have savings. This day and age its rate. If new people do not buy the cheaper houses, then current owners will struggle moving up - the whole market = very slow if not paused.

It's not that ridiculous when I have plenty of income. Its a challenge I have taken. If you don't try you don't get.

Its not appalling financial management - I have no defaults or problems, I have a high credit rating. I upgraded my car out of uni and then upgraded again about a year ago. I don't plan on upgrading again. For ages I've sent double the minimum to my loans, its managed very well, we only differ because of the quantity. It is really building up my credit score as well. Like I said, £12k is nothing. I move loans to the new one at 9.4% which to be fair is very good in the current market!

I'm not sensing a lot of support here :-p. In fact, some of you are waiting to celebrate when I fail as you would not want me to "jump ahead". Fair enough. Like I said, I'm pretty much waiting to fail, but learning a lot and will be ready in 6 months to seal the deal.

jon557

@brit1234

I can get the stamp duty (£1,300), fees (£1000) and moving costs from a combination of income for the month/2 months and selling the car.

The_J

Come on, you're Flash Jon, Flash Jon doesn't save, Flash Jon has a BMW and a leather sofa. The girls love Flash Jon because he drops 2 grand behind the bar on saturday night and on sunday a.m he becomes Flasher Jon.

Flash Jon doesn't buy a house, Flash Jon rents a penthouse with a river view and mood lighting. You wanna be Boring Jon with crappy house, a fat girlfriend and a Fiat Panda?

destorius

The_J wrote: »

Come on, you're Flash Jon, Flash Jon doesn't save, Flash Jon has a BMW and a leather sofa. The girls love Flash Jon because he drops 2 grand behind the bar on saturday night and on sunday a.m he becomes Flasher Jon.

Flash Jon doesn't buy a house, Flash Jon rents a penthouse with a river view and mood lighting. You wanna be Boring Jon with crappy house, a fat girlfriend and a Fiat Panda?

The J...that is harsh....but very very funny!

Jon - its up to you, it was never going to be a happy outcome you coming on a money-saving site talking about your plan to take on a shed load of debt with no savings to buy a house!

There is a reason you are finding problems hitting affordability....

bodmil

Jon - I'm 25 with a similar salary, only difference is that I spent my 4 post uni years paying off my student loan, saving and living at home. I now have the pick of lenders at the best rates which will benefit me for years to come. If you try to manhandle your way into a mortgage now or soon it will only bite you in the bum, you'll have a ridiculous rate to service. Obviously your purchases are important to you and were worth getting into debt for, but they don't mean anything to a mortgage lender.

And I'm not sure I'd agree with your good credit argument at all!

You're on the right track by throwing everything you can on your debts, just keep at it and keep away from Rightmove for a while! Perhaps you could sell your car and furniture to sort out your debts?

opinions4u

jon557 wrote: »

With 38 years, its a £704pm mortgage and brings me down to 45% dead on.

38 years?

Right. So you'll be what at the end of the term? 62? 63?

Your kids will hit university age long before this. You will hate your career choice long before the term expires, but tied to your debt. You will be pondering ways of easing up as you hit your late 40s, but your debt will take all your choices away from you.

If you can't afford to do it over 25 years take the view that you can't afford it.

Dont restrict your options later in life by borrowing over a stupid term now.

jon557

There is information I have not provided that defends against some peoples concerns. For example, yes I can afford 38 years, possibly even lower to 25 years but they won't allow it as its over committing so they have very low tolerance or 45% debt allowance. When my loan is paid off in 1.5years (£12k) I will have much much more cash available. Also, I am not going to be on the same salary until I retire, that's crazy - I have had 10% pay rises for the last 3 years, I am due to take over from my manager in the near future (perhaps in 2 years) and hes around the £65k mark.

I still don't agree with peoples concerns that I have bad credit. I have never defaulted, I have had 4 loans in my life and paid them all PERFECTLY, I have had 4 credit cards and they are all perfect, several overdrafts all perfect. LloydsTSB said their internal score of me is 3 out of 10, 1 being the best score you can get.

People who have not had loans or credit cards will not have any credit history and will not be able to prove to a mortgage company that they will always pay on time. I check my credit report with 3 credit agencies every month, I have done for 2 or 3 years now.

With regards to the "Flash Jon" comments, well, you're kinda right I like to have a nice place and powerful car but my car is only around the £6k mark (Audi S3) etc. I'm not a mad spender.

Summary, I can more than afford what the 95% mortgage offers. In 1.5 years when my loan is paid off I will have £350pm more to commit AND I'll be on over £50k easily. ALSO, I have a friend that will be paying me £400pm for the second room. The flat is in a very sought after area, flats go like pancakes, usually sold in 5 days!

bodmil

It's not really us you have to convince, it's the mortgage lenders, who are currently not on your side.

jon557

This is true... :-p