Achieving the Impossible (FTB)

jon557

Ok thanks for your comments, I learn from provided information (good or bad). I do however naturally seek for the exception to the rule. Think out side the box and challenge status quo. I know I can afford a certain figure, but mortgage companies obviously are not yet impressed and need a safer margin to operate in.

I may sound like I spend a lot of money - like when I mentioned the cars and furniture, but that was years ago. I have been paying off debt a lot since then, putting more into it all the time.

So, my plan b could be:

1 - Pay off all debts in 6-12 months
2 - Sell car for my 5% deposit
3 - Do not do any credit applications/searches for 6 months
4 - Ensure score stays really good
5 - Apply with no debt and 5% savings for a 95% mortgage

Maybe I could even do a 10% if I wait long enough, bah.

This would have been so much easier before this recession.

Cheers.

jon557

Naaaa, 95% is good for me. I know my loan would add to that to make it up near 125% but my loan is going in under 12months. Priority call!

jon557

Are many people stuck in 125% mortgages?

GMS

jon557 wrote: »

Are many people stuck in 125% mortgages?

Thousands of people stuck in thousands of different mortgages for a variety of reasons. Best to mitigate the risk if possible both from a lender and borrower point of view.

Southernman

jon557 wrote: »

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.

I earn half your wage yet i have no unsecured debt in the form of loans or c/c. I have savings and i have a mortgage in my sole name and overpay. I'm younger than you and i'm definitely not the only one.

Nor am i a skinflint, i plan to have four holidays this year. I just know how to manage my finances. I would, however, be quivering in my boots if i had £12k of debt in the form of a loan.

To me, you seem to view getting a flat as some super cool project. It's not just for 'LOLS'.

chilli_red

jon557 wrote: »

Shares are locked for 3 years, I dont think I can sell them just yet.

Our final salary scheme is locked, the only way they can convert it is if 100% of employees within it vote to do so. We are not public. The union has locked it well.

The pay rises are not guaranteed but they could have stopped them during the recession, but they did not. They made 200 people redundant for some reason before stopping any pay rises. We have a very strong union. We've just won over £500m of contracts around the world so I am very confident I will get my rises. But like we agree, its not guaranteed.

Anyway...

Why would a Strong union go for 200 people being made redundant but still give pay rises to the rest of the staff??? Think you need to invest in some air freshener as I can smell the bulls**t from here!! Unions dont work like that, all pay rises would have been frozen.

jon557

That is rare, so well done.

People at work laugh at me when I say I've got a lot of debt @ £12k, they have credit cards capable of that! Its nothing to them.

I'm not quivering because I don't notice £350 leave my account every month or the £500 extra I overpay (give or take).

I know how to manage my finances, but I have not wanted to save for a deposit until now hence I do not have one.

I kinda agree with you on the super cool project, to me it is just buying some bricks but then turning it into a home. There are just a lot of hoops to jump through. I'm only looking at a cheapy flat.

jon557

Why would a Strong union go for 200 people being made redundant but still give pay rises to the rest of the staff??? Think you need to invest in some air freshener as I can smell the bulls**t from here!! Unions dont work like that, all pay rises would have been frozen.

I have no idea! But now that I think about it, it is a bit odd. Maybe the pay rises were so embedded within trade union agreements that it was easier to let people go. Pay rises were delayed for a year once, but then backdated.

I don't know, I can only say I saw some people take VR and some contractors not renewed. But pay rises remained.

moatmeister

I am quite sure you have managed your commitments well and that is in your favour, or at least does not go against you. However:

Bearing in mind that they probably wont lend to anyone with a less than 9/10 score on their top secret internal systems and you say the best score it is possible to get is 3/10, then there is the crux of the problem, which is:

The banks do not want to lend unless you fit their target customer profile.

They will not tell you who their target customer is but its probably one that wants to give them money rather than take it from them. Remember they will only lend you an umbrella on a sunny day because they selfishly do not want to get wet themselves!

I have been in a similar situation. If you keep thinking outside the box you will eventually find a way but it probably wont be the easy solution you had hoped for!

opinions4u

moatmeister wrote: »

They will not tell you who their target customer is but its probably one that wants to give them money rather than take it from them. Remember they will only lend you an umbrella on a sunny day because they selfishly do not want to get wet themselves!

I have been in a similar situation. If you keep thinking outside the box you will eventually find a way but it probably wont be the easy solution you had hoped for!

No need to over complicate things.

The target customer you refer to has a bigger deposit and less debt.

It's no secret that mortgage lenders prefer this.