Advice required!

jamesd

mynameisben wrote: »

hmm, so generally the feeling is, no to loan.. hm, ok so i need a different approach..

Right. But why a house?

The traditional ideal first time buyer property is something like the cheapest needs work flat available in a cheap road. Doing the place up - including paying people to do that - then gets you a place you can more easily afford to buy and an increase in property value to help you on the next step.

Living in a cheap place is a great way to let you accumulate money quickly compared to saddling yourself with the costs of an expensive one!

If you like, say something about roughly what sort of the country you're in and maybe someone will do some property searches to give you an idea. In many parts of the country it's possible to find flats or even houses for less than £50,000. Not perfect magazine homes, but easily affordable places to live and do up.

mynameisben wrote: »

subsequently to say, it ended up with debt collectors, so i would rather pay over the odds now just to get rid of it. - if however i reduced the payment, i think i would save prehaps another 7-800 quid.

That's a really bad thing for your chances of getting a mortgage. You can't trust any indication about whether you'd be able to get a loan unless you've told the lender about this.

You'd almost certainly be told to get lost by the more fussy lenders like First Direct and HSBC. Those reject people even for a single late payment at times.

But this doesn't mean no hope. Your own bank may well just use their own history with you or limit the amount they will lend.

mynameisben

jamesd wrote: »

Right. But why a house?

The traditional ideal first time buyer property is something like the cheapest needs work flat available in a cheap road. Doing the place up - including paying people to do that - then gets you a place you can more easily afford to buy and an increase in property value to help you on the next step.

Living in a cheap place is a great way to let you accumulate money quickly compared to saddling yourself with the costs of an expensive one!

If you like, say something about roughly what sort of the country you're in and maybe someone will do some property searches to give you an idea. In many parts of the country it's possible to find flats or even houses for less than £50,000. Not perfect magazine homes, but easily affordable places to live and do up.

That's a really bad thing for your chances of getting a mortgage. You can't trust any indication about whether you'd be able to get a loan unless you've told the lender about this.

You'd almost certainly be told to get lost by the more fussy lenders like First Direct and HSBC. Those reject people even for a single late payment at times.

But this doesn't mean no hope. Your own bank may well just use their own history with you or limit the amount they will lend.

Ive already got the agreement that Lloyd's would lend me 92k, everything checked out, and she said i would get 10% morgage no problem,
I just dont see an easy way to accumilate a deposit in quicker time then what ive already planned,
Trying to save more then 300 a month is a tall order, but i think if i made some more lifestyle adjustments then i think i could push it further. what else though - i dont drink, i only smoke, but swapped to roll ups - alot cheaper ( granted still no good but its my only vice )

I wouldnt say i want to be a traditional first time buyer - i hate flats because thats all you have is just the flat - i'd be happy with a terraced two up two down, and the prices round here vary from about 60k upwards - i did see one for 45k going for auction, but apparently has japanese knotweed not good apparently..
eitherway - dirty hole is what i want to do up, Im quite handy at the o'l DIY so can do alot of the ripping outmyself..
I'deally it would be fantastic to say, right 12 months - i'd have a deposit, then go get something to call my own.

Im just unsure how to do it!

I really have appreciated the feedback so far

Franklin2872

Keep saving, get a second job, and don't stop at 10% deposit, you really want to make sure you can cover at least 3 months mortgage payments with some form of easy access savings.

Maintaining a home can be very expensive so think about getting a lodger, not sure what the exact amount is but you can earn about £6k tax free from renting out a room.

Google 'BBC mortgage calculator' to see what you will be paying at different interest rates. 92k is a lot to borrow on a salary of £21k, the bank may let you have it with a deposit but if interest rate rise you may struggle.

Pay off your loan first, and avoid credit cards at all cost, credit cards are the worst form of debt, well after pay day loans.

Get some books and educate yourself about money. 24 is a great age to learn about money, especially investing, Google 'The Naked Trader', 'The Snow Ball', 'Rich Dad, Poor Dad'.

Hope that helps.

:beer:

ACG

Having the loan with debt collectors makes things completely different - this is one of the reasons why its worth sitting down with a broker - they can get all the info in one go rather than pulling bits out at a time.

If your debt went to debt collectors then at 90% your going to have to wait until those debt collection markers are a good 4-5 years old anyway or get all 3 of your credit reports to a broker and see if they can find a loophole - i suspect your going to be waiting a while anyway but without seeing your reports its difficult to say.

mynameisben

grr my post didnt post!
I'll start again!
I went on the mortgage calculator,

The most i could comfortably afford would be 500 PCM, thats on 70k with 7% interest - i have taken account everything ie food bills council tax etc etc, as long as i kept under 1k a month expeenditure i would also still be able to save a reasonable amount too.

as i see it, i currently spend 430 on a loan and board, plus have to cover anything else myself - 250 just for a room isnt all that bad.
its not something i miss.
I doubt i would want any more then this - i see pleanty of potencial propertys going for below this, the ones which need work of course.
which i wouldnt mind as i like getting dirty

the only thing which is bad on my credit report is to do with Three the phone people - as i defulted on a phone contract as they wouldnt give me no leeway when i was on the dole three years ago.
I suppose back then i was young and naive with how things work but actually now realise that in hindsight - it messes your chances up and you pay heavily in the long run.

I think my Main goal is to clear my loan first, Meanwhile i would also look to getting rid of the credit card - its not that i use it much in all fairness, i just like to try and build up a decent credit history with it as thats all i ever kept reading about to get a good rating. as you get trusted with money.
I appreciate all the imput from everyone its really appreciated.

Anyone got any jobs going

buzzyzoe

mynameisben wrote: »

grr my post didnt post!
I'll start again!
I went on the mortgage calculator,

The most i could comfortably afford would be 500 PCM, thats on 70k with 7% interest - i have taken account everything ie food bills council tax etc etc, as long as i kept under 1k a month expeenditure i would also still be able to save a reasonable amount too.

as i see it, i currently spend 430 on a loan and board, plus have to cover anything else myself - 250 just for a room isnt all that bad.
its not something i miss.
I doubt i would want any more then this - i see pleanty of potencial propertys going for below this, the ones which need work of course.
which i wouldnt mind as i like getting dirty

the only thing which is bad on my credit report is to do with Three the phone people - as i defulted on a phone contract as they wouldnt give me no leeway when i was on the dole three years ago.
I suppose back then i was young and naive with how things work but actually now realise that in hindsight - it messes your chances up and you pay heavily in the long run.

I think my Main goal is to clear my loan first, Meanwhile i would also look to getting rid of the credit card - its not that i use it much in all fairness, i just like to try and build up a decent credit history with it as thats all i ever kept reading about to get a good rating. as you get trusted with money.
I appreciate all the imput from everyone its really appreciated.

Anyone got any jobs going

One way people might be able to help is if you post a version of your monthly earnings/spendings/savings.

I earn a similar amount to you, and live at home. I pay £140 to my mum to cover bills, £140 on travel, live off around £300 a month (£150 food, £30 mobile phone, £120 socialising) and try to save at least £700 a month.

Obviously you have the loan to pay off, which will cover some of your earnings, but people could maybe suggest ways to save more if you could post your monthly budget? Just an idea.

Best of luck!

mynameisben

buzzyzoe wrote: »

One way people might be able to help is if you post a version of your monthly earnings/spendings/savings.

I earn a similar amount to you, and live at home. I pay £140 to my mum to cover bills, £140 on travel, live off around £300 a month (£150 food, £30 mobile phone, £120 socialising) and try to save at least £700 a month.

Obviously you have the loan to pay off, which will cover some of your earnings, but people could maybe suggest ways to save more if you could post your monthly budget? Just an idea.

Best of luck!

250 for board
200 for loan
50 for car ins
40 for general wear n tear on car, considering its cost close to 450 in the past couple months for road tax and general repairs parts etc, im lucky in the fact i have a slight knowledge so can do most things and not take to a garage!
100 for fuel
30 for any extra's with my lunch at work etc,
60 tobacco
20 for toiletyrys
43 phoner cintract

I put 300 into savings, keep a little space in my account, and then the rest goes on me,
From socialising all the way to beer drinking and buying clothes, everything which i spend on me would come of of whats left.
so i have around 250-300 pounds to spend.

the only thng i could suggest would be to cut my social aspect by some degree, cut some from fuel, it could be inertesting to see if i could just shave a little off everything.

I know this month ive put an extra 100 in, but that was due to having to borrow 100 from savings to sort out car..

if i could try and push to 500 pcm, but i think that would mean losing alot from the social aspect, and also limitations of driving to cut fuel consumption down

gaz141

I'd give up the fags if I were you, if you take out any sort of insurance on your mortgage, then the Insurance companies do not like smokers one bit and will see you as a risk, and increase your payments. Not to sound like your Dad, but you are young enough to quit now! Also think where you could put that £60.00 per month towards

mynameisben

gaz141 wrote: »

I'd give up the fags if I were you, if you take out any sort of insurance on your mortgage, then the Insurance companies do not like smokers one bit and will see you as a risk, and increase your payments. Not to sound like your Dad, but you are young enough to quit now! Also think where you could put that £60.00 per month towards

hahaa. as much as I would love to quit I just don't have it quite in me to.

I think if the insurance want to increase payments because I smoke, would be a little unfair. I wonder if they would charge me more because I have a bmi of over 25? that's gotta be considered a bad thing with heart attacks and diabetes etc..

buzzyzoe

Tobacco definitely seems like an area where you could make savings. Even if you don't quit, could you cut down? Or have you tried E-cigarettes? Think they might be cheaper?

As with everything, it's a compromise. Is it worth cutting back on the social side of your life to be able to save more? Again, doesn't necessarily mean that you have to stay in, but could you find cheaper ways to socialise, or spend less on drinks when you're out?

Again, could you walk more instead of driving? Obviously this won't be feasible if you work really far away, but if you use the car for a lot of small journeys, maybe you could cut back on them.

Depending on where you live, would it be possible to use public transport instead of driving? Appreciate that this may not even be cheaper though, and is likely to be much less convenient, but could be something to think about?