Right to Buy to Permitted Developments to Defaults and everything in between!

Cakeguts

Marvel1 wrote: »

The sooner they get rid of RTB the better, whoever wishes to do in their policy gets my vote - reasons given by Cakeguts.

The clever councils have already found a way round this. They build properties using their own property company and because the properties are not owned by the council but by a property company the properties are exempt from Right to Buy. So in future there will be more council social housing that is not available for Right to Buy because it isn't directly owned by the council.

SnooksNJ

elaine77_04 wrote: »

I won’t share my salary on here as I don’t share this with anyone but professionals in a professional .

Great contact Suze Orman and see what she says.
No savings, threats of redundancy, high credit card debt, and defaults I think she will say, like the majority of posters on this thread, you have been declined.

MovingForwards

You don't need a 42% deposit to buy on the open market, 5-25% depending on lender requirements in your circumstances.

My concern is you have two defaults which have not been settled, are you paying any of those debts off each month or are they just sitting there with no action by you? You don't need to settle the whole debt in full but lenders would be happier knowing you are dealing with your old debts.

You will need a broker who deals with adverse credit and RTB.

Cakeguts

It appears to be one of those cases that often come up on here where people have what they think have savings but when you look at the level of debt they often don't actually have any savings if you offset the debt against it.



Obviously the solution is to pay off the debt and then start saving without taking on anymore debt.

AdrianC

elaine77_04 wrote: »

I actually earn more than my husband so affordability-wise it makes more sense to get the mortgage in my name plus it’s my tenancy (even though he is listed as living there too).

The property is "£130k max" - so 58% would be £75k.
At 4x salary, that only needs £19k salary to give you all the affordability you need - and that's not very much over full time minimum wage. I can't see affordability being an issue here.

elaine77_04

SnooksNJ wrote: »

Great contact Suze Orman and see what she says.
No savings, threats of redundancy, high credit card debt, and defaults I think she will say, like the majority of posters on this thread, you have been declined.

Nobody has actually said that at all so I’m not sure which thread you have been reading! You’ve also taken everything out of context but, hey ho, I’m open to all ramblings and there have been a few!

I think I will go and buy my house with my 42% discount and if I have to take a higher rate on the mortgage until the defaults drop off then that’s fine as affordability is not an issue and the defaults are 2 years old already. Then after the defaults drop off and the discount becomes non-repayable, I will either re-mortgage on a much better deal and extend my house or I will simply sell it and get back all of my equity!

I didn’t come on here for debt advice as I’ve already taken advice from a professional on this, though it doesn’t surprise me that the ‘we like to beat people with sticks’ kind of people have honed in on the debt aspect and provided little else of any use on the thread. As for my debts, I haven’t acknowledged them; I haven’t mentioned buying my house; I’ve told them absolutely nothing as I was instructed to do by the IFA and, unless they take it to court which the IFA thinks is highly unlikely for credit card debt, I’m not paying it as the IFA told me not to because partially settled debts are just as bad as defaults and by the time I clear the full balance the defaults will be gone anyway!

One thing some of the unhelpful, patronising and “I’m better than you” responses to this thread has taught me is that there is no medal for being a nice guy these days so, thanks! You’ve made me feel a whole less guilty about the whole situation and I really hope nothing ever happens in your perfect lives that makes you have to take a hit on something to protect everything else; and if it does, I hope people are more helpful to you than you have been to me ��

As for those of you who responded with really helpful threads, thank you very much for your time and I really appreciate it. Some of you gave some very helpful information and actually tried to provide answers to the questions asked rather than jump on a high horse and use it as an opportunity to make yourselves feel better by criticising me and somehow making out that I’m so poor I don’t deserve to own my own house.

But own it I will.

The greatest revenge is to accomplish what others say you cannot do.

AnotherJoe

I'm still puzzled by why you think your creditor will just let the debts go away?

Read the debt free and loan forums, they are full of people being chased for debts, getting bailiffs round, CCJ's etc. Yet seem very sure that whoever it is now owns these loans ? Barclays or soemone else? is just going to let them wither on the vine.

The fact you were advised not to pay doesn't mean they wont chase and since you both have earnings I'd have thought an attachment of earnings order would be the likely next step, unless you have been told by the owner of the debt they are happy to write them off. Which seems unlikely for a two year old substantial debt from someone who clearly has the money to pay them.

Emanresu321

Regardless of the RTB discussion, if you still owe the money I'd be surprised if it were just forgotten about by the lender or DCA?
Unless you agree to some sort of repayment plan, they could at any point in the next 4 years come back to enforce this surely?

Sounds like it £10k or so owed, so not a small amount.
I personally couldn't just leave it knowing I could be facing bailiffs turning up, my employer getting attachment of earnings requests, or worst case scenario, if you buy the house, you could end up with a charging order against it or a creditor petition to bankrupt you once they know you have assets.
Seems odd you're not bothered about this?


ETA - cross-posted, same thoughts as above!

theoretica

My understanding is that it is very likely for any mortgage offer to require you to pay off your existing debts, especially the defaulted ones. Certainly getting a mortgage with Barclays, who hold one of your debts, would require this. It looks to me like you would be best off talking to a mortgage adviser, and this is a question to include as it would complicate your financial calculations.

da_rule

The debt thing is a concern, unless you’ve had some form of confirmation that they have released you from the debt?

If not, I would be concerned. They have 6 years to commence debt recovery proceedings (12 if any of the contracts the debt relates to were executed as a deed). In those years, again, unless you have agreement to the contrary, the debt will keep accruing interest.

If they then opt to take you to court (and as you’ve admitted the debt it would seem that you wouldn’t have a leg to stand on) you’d also be looking at court fees plus legal costs. You would then have post judgment interest at 8%, and assuming you can’t pay you’d end up with an unsatisfied CCJ which will really damage your credit rating.

It may be that, because you’ve told one of the companies you owe money to that you’re thinking of buying the house they’re holding off as they know they’ll be able to put a charging order on the house (at your expense).