L&C feeling very dejected

[Deleted User]

It doesn't seem to have occurred you have been rejected for a reason. Reduce your debts. Rethink your approach to your finances, save a decent deposit and then you will have your pick of mortgages.

Wack85

deannatrois wrote: »

However much you love this house, there will be others. With the financial situation as it is, it might be best to wait, reduce the debt load, and relook at how you budget. This could actually set you both up for a more secure future.

Applying for a mortgage with an overdraft (which means he is spending more than he has coming in), an unresolved debt issue and getting a loan for the car AND insurance is not a good idea. Surely you can see this?

Thanks for the reply

With the car he wanted relatively new as he needed something reliable as we currently live in a village in the middle of nowhere and as soon as bad weather starts the buses stop running through the village. The insurance for the car made more financial sense, or so we thought, as paying it for the year was cheaper. I take your comments on board though, we really thought it was the best thing at the time

Wack85

warby68 wrote: »

Where do you fit in?

Can you raise funds instead of him or are you both not 'ideal' candidates for a mortgage?

House is unusually low in value - is it actually mortgageable? Can understand why lenders are not interested, just not much in it for them or the brokers presumably to go 'the extra mile'.

Whilst the debts are not huge, the overdraft in particular shows a stretched position as does funding 12m car insurance over longer term so a default on top? Uphill struggle I'm afraid.

I'm part time so my wages cover childcare for our two children so we thought I wouldn't 'help' the application.
No other defaults other than the water bill which we didn't know he had until now and are trying to get it removed from his credit file

bouicca21

With debts equivalent to a third of his salary, you surely can’t be surprised that banks think he can’t manage his money - and that’s before adding in the default.

Wack85

Fire_Fox wrote: »

Welcome to MSE.

That reads as 'robbing Peter to pay Paul' rather than genuine savings for a deposit. Does your partner have money set aside for the costs of buying (survey/ conveyancing) plus a decent 'rainy day fund'?

Rainy day fund is for when your boiler breaks down out-of-hours, tiles fall off the roof and fence blows down in a storm, fridge-freezer dies when you are away for the weekend, unexpectedly lose your job, unable to work due to illness or injury ......

State benefits do not help with mortgage payments for many months now, even then only a loan to cover the interest. With other debts to service your partner could quickly get into trouble without a healthy savings 'cushion'.

HTH.

It does help thank you. Other than the deposit, which we've saved, we have £3300 (roughly) for surveys etc

the only state benefit we get is child benefit

Wack85

deannatrois wrote: »

It doesn't seem to have occurred you have been rejected for a reason. Reduce your debts. Rethink your approach to your finances, save a decent deposit and then you will have your pick of mortgages.

I think that's unfair, nowhere have i said we don't understand why we'd have issues, I was simply asking if the advise we've been given by L&C, who told us to buy a more expensive house, was legitimate advise as it doesn't seem to make sense to us.

Wack85

bouicca21 wrote: »

With debts equivalent to a third of his salary, you surely can’t be surprised that banks think he can’t manage his money - and that’s before adding in the default.

I understand what you're saying. We didn't honestly think that we could buy a property but when we looked into things and were told it was possible it's hard not to get your hopes up

Wack85

Yalpsmol wrote: »

If he is into his current account overdraft by 1700 with a deposit of 2k, what he has actually done is save £300. Why was he trying to get 44k if the house is 38k? Or did he apply against another house/before he saw a particular house and knew how much he needed?

Unless there are further savings you haven't mentioned it doesnt sound like he is in a financial position to purchase right now anyway. Very minimal savings- and 5k for a car and insurance seems like poor financial judgment for someone on a low-moderate income with debt already. How long will it take him to pay it off? You can buy a decent 2nd hand car suitable for a few years of a motorway commute for half that.

What area is he in? 40k is a cheap house, is it something that is going to need work-how much has he or can he put aside for that?

The only saving £300 is a great way of explaining it so thanks for that, it makes a lot of sense to how it looks/is

We're in the North east, it's a probate property and the house is very old fashioned as the owner lived there for a very long time, so the work that needs doing isn't urgent just updating as and when

pinkshoes

With a £1700 overdraft and £1800 on the credit card, you haven't actually got any savings once you pay these off.

Look at your expenditures, pay off your debts, and THEN look at buying a house once you have a proper deposit.

Wack85

pinkshoes wrote: »

With a £1700 overdraft and £1800 on the credit card, you haven't actually got any savings once you pay these off.

Look at your expenditures, pay off your debts, and THEN look at buying a house once you have a proper deposit.

You're right, after reading the comments on here that's what were going to do. We need to be realistic and sort out his debts before we consider buying