Am I wasting my time?

Debtfreestudentnurse

A few years ago myself and my husband became unemployed at the same time.

As a result we have numberous defaults (9 between us) ranging from £1200-£300.

To get our payments back on track we entered a DMP.

We are both now in a much better place financially, and have started saving for a house deposit.

I’m 37, he is 40.

We are able to save between £1500-£2000 per month.

My plan is to clear all of our debts (£7900) in total and then begin saving the deposit.

I know our credit reports are shocking.

Am I wasting my time even thinking about a mortgage?

We hope to be debt free/DMP free for a year before buying.

Would an adverse mortgage lender even consider us with this amount of defaults?

They start to drop off in 2020, with the last one in 2022.

lookstraightahead

I would wait til 2022 and save what you can til then.

You'll still be young enough for a mortgage.

Debtfreestudentnurse

Thank you - our ages are a worry.

Can’t believe I’m saying that while I’m in my 30’s!

Ahsoka

You’ll be fine with regard to your ages.

Myself and my partner have just bought our first home at the end of last year. I’m 45 and she’s 48. It just means that you may wish to take a shorter mortgage term that’s all. We went for 20 years.

dimbo61

Your state retirement date is your 68th birthday if your in your 30,s so consider this when you both apply.
In the meantime save, save, save.
Clear your debts and pay every bill on time.
Build up the biggest deposit you can and reduce any other costs if possible.
Don't sign up for a new Car/Oled TV, Sofa or credit card if you possibility avoid it.
Buy cheap reliable second hand transport if you really need a car.

Debtfreestudentnurse

I've just signed up for a credit builder credit card, however I plan on using small amounts, for example a weekly shop, and then paying off the balance in full every month.
I've reduced every outgoing I can, mobile phones are changing onto sim only plans next month, saving me a fortune, and I've stopped smoking, saving me another small fortune!

Cakeguts

Debtfreestudentnurse wrote: »

I've just signed up for a credit builder credit card, however I plan on using small amounts, for example a weekly shop, and then paying off the balance in full every month.
I've reduced every outgoing I can, mobile phones are changing onto sim only plans next month, saving me a fortune, and I've stopped smoking, saving me another small fortune!

No cars on finance?

kingstreet

It's all about time elapsed since last adverse v size of deposit.

The more the deposit, the closer you are time-wise to a decent rate mortgage.

Alternatively, if you have a smaller deposit, the further you are away time-wise from a decent rate mortgage.

You may be able to get sub-prime rates now; or as soon as you have 15% deposit.

pinkshoes

3 years x 12 months x £1500 savings = £54,000.

Keep saving! Your ages will be fine for a mortgage!

babyblade41

So in 3 months you will be debt free .. in 2 years you will have nearly 48k deposit which is absolutely fine but... how did you get into a horrid credit history and all of a sudden end up with extremely well paid jobs .both at the same time.

To be able to save between 1500 and 2k a month and yet your debt of £7900 which could be paid off in 16 weeks but caused you terrible credit history ... I'm not understanding

Debtfreestudentnurse

My husband was self employed, some weeks not bringing in a wage at all, hence the mess we got into. I wasn't working at all. We were spending on credit cars, mail order, everything under the sun. as a result we were unable to keep up the repayments.

My husband gave up his business and secured employment on a permanent contract.

4 years ago I decided to go back to uni and managed to secure a well paid job after qualifying.

Its only recently we've given our heads a shake and realised we need to take control of our finances.