If I can afford rent how come I can't afford mortgage?

extrastrongbint

Mr_helpful wrote: »

I cant see the advantage of self cert un less you mean tell lies. Unfortunately OP has no deposit and slightly dicky credit.
I dont think Financial Adviser is really the right career choice just yet. A few years time may be.

Actually I don't have a deposit as you can see and any self cert requires 90% LTV - meaning I would need a 10% deposit which I don't have and whilst I am grateful for your advice I would point out I am a trainee financial adviser doing my exams this year. And what I do with my own money is no reflection on what I do at work thanks.

shelovestobuystuff

ajaxgeezer wrote: »

Well those late payments will be on your file for 6 years. Add that to no deposit (your 'potential' two grand would pay your fees and not a lot else, maybe not even stamp duty if applicable) and a high salary multiple at a time of medium-term uncertainness..... I think I'd be keeping my cash in my pocket if I were a lender.

It is only defaulted payments not late ones which are recorded for 6 years from the date of default(this is where you stop paying altogether and they have to chase you up for the money).Late payments will show up for about 12 months only depending on how often your c.c. lender updates their info with the credit ref agency.
I also think that having good credit show up rather than little or no credit is much better when looking for a mortgage or big loan as it shows a record of being a good payer.
Your bank account info will show up too in a search.If you are in overdraft often or have a low balance persistently it will look like you have poor spending habits and threfore are a bad risk for a lender.
O.P. I think if I were you I would save as much as possible for a deposit whilst getting my credit record looking nice and healthy.
Renting out part of your new home is an excellent way to help get and pay the mortgage.Check out details of the governments rent a room scheme.

Mr_helpful

extrastrongbint wrote: »

Actually I don't have a deposit as you can see and any self cert requires 90% LTV - meaning I would need a 10% deposit which I don't have and whilst I am grateful for your advice I would point out I am a trainee financial adviser doing my exams this year. And what I do with my own money is no reflection on what I do at work thanks.

I wasnt being nasty or having a pop at you I was merely pointing out that as a financial adviser you could struggle. After all would you go to an adviser with no house, no savings and a slightly adverse credit record? It takes time to build yourself up.

shelovestobuystuff

extrastrongbint wrote: »

Ooh sorry forgot the bit about credit history - mostly good - had few late payments on credit card a year ago

I used to do that alot, just too busy and forgetful to keep my bills in order.If you have not already done so set up Direct Debits for the minimum payments at least.Saves tons of hassle and charges and keeps credit record nice and healthy.

extrastrongbint

shelovestobuystuff wrote: »

I used to do that alot, just too busy and forgetful to keep my bills in order.If you have not already done so set up Direct Debits for the minimum payments at least.Saves tons of hassle and charges and keeps credit record nice and healthy.

Yeah - have done now - my account is a lot healthier and I have paid off two credit cards in their entirety this year! So things are on the up for me moneywise with or without a house - I thinks its just a matter of nose to the grindstone and to be patient (unfortunately not very good at patience)

extrastrongbint

Mr_helpful wrote: »

I wasnt being nasty or having a pop at you I was merely pointing out that as a financial adviser you could struggle. After all would you go to an adviser with no house, no savings and a slightly adverse credit record? It takes time to build yourself up.

I realise that... but I am not a financial adviser yet - and it may take years - you are correct.

space_rider

I did get a mortgage from abbey based on affordability but i did have a 45% deposit.