Frustrated with property ladder...

dilemma10

Hi everybody,

I'm getting increasingly frustrated with not being on the property ladder and am under significant pressure to get on it. My situation and confusion is as follows:

1) I'm 24 and on a decent wage £41k and secure, with a foot on a good career ladder. Borrowing calculators say on this alone I could borrow a significant sum but in reality I'd be comfortable with borrowing between £100 to £120k.

2) My Mum is due to come into a significant sum of inheritance, it's waiting at probate stage right now and it has been suggested the best thing they could do for me is get me on the ladder.

3) THE most frustrating thing is that despite 1) & 2) I have a very poor credit rating (around 360) because of silly things I have done in the past - namely 1 or 2 defaults with Orange on a mobile contract, a default with HSBC and a default with Halifax - all monies are settled, but I cannot see how to get round this.

The only alternative I can see for now is that if my Mum comes into money they both do the Springboard Barclay mortgage but would this still take into account my poor credit rating? Grr.

Is there ever going to be a way round this or not despite my decent salary/savings and projected career path

TDPIX

How much deposit do you have? And how long ago were the 3/4 defaults? They only stay around on your credit report for 6 years so I guess the choices you have are either wait until they drop off your report, or get a big deposit together (30%+) and get a good mortgage broker.

There will be a way forward... although perhaps not straight away if you only have a small deposit.

GMS

When were the defaults and for how much? Whan were they satisfied and was this in full or partial settlement?

As stated above your amount if deposit will be crucial. Is your Mum willing to gift you a deposit or do you have savings?

Barclays are unlikely to accept you with adverse credit in your history.

A broker is pretty much essential for this one.

kidmugsy

What is this property ladder of which you speak? How do you know it's not a property snake?

ValHaller

Getting on 'the property ladder' is often a good thing. But not always, not for everyone and definitely not at any price.

So don't succumb to pressure and only do it when you understand what you are doing and you are convinced it is right for you

notanewuser

dilemma10 wrote: »

Hi everybody,

I'm getting increasingly frustrated with not being on the property ladder and am under significant pressure to get on it. My situation and confusion is as follows:

1) I'm 24 and on a decent wage £41k and secure, with a foot on a good career ladder. (

From another thread it seems this is a relatively new job (after August 2012) in which case it is NOT secure as you can be got rid of for any (or no) reason whatsoever within the first 2 years.

So high paying but new job, no deposit of your own and a dodgy recent credit history isn't a great prospect for a bank. Sorry.

bowlhead99

Save half your net pay for a few years, by which time your dodgy credit will be behind you and you'll have a better salary and better deposit for your mortgage.

As someone in their mid thirties finally getting around to buying a house, it does make me smile when someone age 24 is getting 'increasingly frustrated' that they don't own property:)

With current life expectancies you might be around another 80 years plus. That's around a thousand months. While, depending whether you did Uni or not, you might only be 30 months into your career.

Put like that, the frustration that you're not yet a homeowner (when you've defaulted on debts in recent memory due to youthful naivety) is just laughable really. Plenty of time left to get a house, and meanwhile renting will give you much more flexibility to follow your career wherever it may take you.

If the 'significant pressure' to buy a house is from your friends, tell them to chill out and enjoy being 24. If it's from your mum, come clean with her that you handled your credit badly and you need to build it up again to get the best deals that are out there.

Are your 'defaults' actually you missing a whole bunch of payments and being declared in default and getting debt collectors after you, or just making a '1' on your credit file with a couple of companies from payments a maximum of a month overdue?

If the latter, you might be fine, with a decent deposit and low salary multiple. I had one barclaycard which i foolishly kept missing every other payment until I got round to direct debiting it - think I have about 7 misses on my record 36+ months ago and 1 in the 24-36 months ago range when I changed bank. Didn't stop me getting an agreement in principle for 4.8x joint salary and then the actual mortgage offer at 3.5 salary once we found a place.

nakiwala123

I can sympathise with you in terms of pressure to buy. DH and I are also under so much pressure from his family to buy but we are now comfortable to let them down in terms of expectations when we tell them that we are not ready. And if I hear another 'rent is money down the drain' I will throttle them! We are saving for a deposit and it might take longer than desired but I don't want to be strapped with a hefty mortgage when we are not ready. Even if you have the deposit, mentally you might not be there yet and it's such a long commitment to just take lightly.

At the end of the day you will be living in the place you buy and if you end up buying under pressure then you might end up with a property that is not for you. Good luck