Mortgage by end of summer 2015

Contracts_Engineer

I was discharged from BR May 2012.

I have sorted my credit reports out and now have a mobile phone on contract and a vanquis card. All bills including the aforementioned are always paid off in full immediately.

My Partner had a Debt Relief Order at the same time as me and Im currently tidying her credit files up (we didnt rush with her credit files as we wanted to see how it worked with mine etc.).

We are living in rented property with the option to buy the property before it goes on the market.

We currently are putting by £1000 a month (currently £3000 in bank) and I pay £600 a month rent. We do not go without either (we both work hard and earn reasonable money).

We are desperate to get a mortgage next year if possible but 2015 at the latest.

Is anyone else situation like ours? Any advice? Would the bank consider us for the government scheme (5% deposit etc.) or am I looking at saving more than a small deposit?

Contracts_Engineer

Is there anybody in the same situation or that has been accepted for a mortgage??

dojoman

You are going to need a more substantial deposit than 5%:( and even then whilst the BR is still on your file it will be very hit and miss if you can secure a mortgage.

Contracts_Engineer

So the thinking is the Government scheme is going to be a no go but if i can get a good deposit then I stand a slim chance

mattannar

Probably a minimum deposit of 40%

Contracts_Engineer

40%?????????????? Ive got no chance then

TheGardener

I'm no expert but from what I have read on here, your chances of a mortgage or any kind of (affordable) loan are very slim until BR drops off your CR after 6 years. Even then, it may be challenging. Search for Pennypg's excellent posts on her journey to get a mortgage or look here https://forums.moneysavingexpert.com/discussion/4739919

There is also a very good sticky post about mortgages post BR.

Contracts_Engineer

Devastated is an understatment.

If anyone is in the same boat or has any success stories of getting a mortgage while BR is on file then please please post!

TheGardener

I know its a bitter pill - but I understood this when I took the BR option - in my case, by the time my 6 yrs are up I will be too old to get a mortgage anyway. However, if you look on the bright side - you're a both on good money by the sounds of it and if you carry on saving at the rate you are doing over the next 4 years, you are going to have over £50K saved up and if you invest those savings well, some interest on top. At that point I think you will be in a very strong position to get a mortgage at a good % rate too.

I cant tell you how much being able to actually 'save' means to me - I would have to work a couple of lifetimes to save as much as you, every penny is a prisoner in our house just to get by. The years will go past faster than you think - keep a squeaky clean credit history and plan for the future.

Contracts_Engineer

Thank you for your comments TheGardener.

Im sorry to hear about you being unable to save. I know what it feels like to not be able to save anything. And on that one occasion when you do have a little extra in your wages something major breaks and it soon vanishes. Due to our extremely poor money management we had to go down the BR route. Its something i never thought id have to do but burying your head in the sand does not work. FACT!

I realize you look at my saving situation in envy and need to point out that I have never been handed anything. Either by well off parents, family deaths - wills etc. I have earned it via promotions and working hard all my life. (i wanted you to know im not some spoilt brat!)

The problem I have is the house im in is massive and as we get on with the landlord and landlady so well they have offered us the house at a below market rate and the date it goes on the market is Aug 2015. My Mrs also has her heart set on the property and with three kids all settled too, I cant imagine having to move to rent again (prob in a smaller property) to then have to buy and move again. I know in the grand scheme of things this my sound trivial or even selfish. All in all we are all healthy (touch wood) and we dont go without.

Its just a kick in the b*lls we wont be able to get a mortgage. (I did go into BR with my eyes open and I realised this was one of the risks I took).

TheGardener

I didn't for a minute think you were spoilt - it isn't just the low paid who go BR. It sounds like you have a lot to be thankful for as you say - your health, good jobs, your family

Is there anyway you could work with family to find a way though this? It does sound like a great deal and if you have a good chunk of savings by the time the house goes on the market - it might be that there is a way. Is there a credit union that's big enough to do mortgages near you? (long shot I know but worth a google?) 2 years is a long time - keep looking, a solution might turn up