Have I destroyed any chance of getting a mortgage in the next 6 years?

gilliweed

I haven't spoken to a broker yet because we don't currently have the full deposit available that we intended to put down, so I didn't think there was any point talking to them yet. Is there? 
I'm really kicking myself now. I had no idea that a bounced DD could be the thing to stop me getting a mortgage, it makes me want to cry when I think how far I've come and yet still locked out

mattyprice4004

You sound a bit down about it, but in reality you're likely to be fine. 
First of all, thank the posters who have replied (little button under their post) - while some haven't told you what you want to hear it's still good information and deserves praise. 
Secondly, speak to a good mortgage broker - my rating was quite awful when I got my mortgage last year, but other factors (income, the other house I owned outright, my job security) all helped when a broker came to the rescue. 

The broker clearly laid my options out, told me what documentation I'd need and generally made the process a lot easier. Ask a local Facebook group (for example) for recommended brokers in your area. 

trex227

In your position I would make a complaint to FD that they have treated you unfairly. Especially given other lenders don’t do the same. It won’t cost anything and you have plenty of time before you plan to make a mortgage application. After all it’s not going to make things worse so you have nothing to lose (other than a bit of time writing it). Fingers crossed you can get them removed

letsbetfair

gilliweed said:

Our affordability I think should be Okish. £115k household income looking to borrow £320k (if we can get the springboard 15%). No kids, own our car outright and (by the time we would apply) no debts. But I'm just terrified that the 10 "missed" payments (which I do not personally feel are missed, late at best) have destroyed our chances.

A bigger deposit would make a mortgage easier to get, of course. With a relatively high household income, is looking at reducing outgoings to save more an option?

pinkshoes

gilliweed said:

Our affordability I think should be Okish. £115k household income looking to borrow £320k (if we can get the springboard 15%). No kids, own our car outright and (by the time we would apply) no debts. But I'm just terrified that the 10 "missed" payments (which I do not personally feel are missed, late at best) have destroyed our chances.

£115k annual household income??? That is HUGE!!! Over £6k a month take home.???

And a £320k house implies you are living in a reasonably ish priced area. (Unless this is a 1 bed...?)

Personally I would be looking at your incomings and outgoings in a SOA as with that sort of income you could easily save a HUGE deposit by next year.

A bigger deposit saved by you would mean more lending options regardless of your credit history. 

steampowered

It's worth going ahead and having a chat with a broker. They should be able to help you get the ball rolling and advise you on which banks to target, even if you will need a bit more time to finish saving up your deposit.

gilliweed

pinkshoes said:

£115k annual household income??? That is HUGE!!! Over £6k a month take home.???

And a £320k house implies you are living in a reasonably ish priced area. (Unless this is a 1 bed...?)

Personally I would be looking at your incomings and outgoings in a SOA as with that sort of income you could easily save a HUGE deposit by next year.

A bigger deposit saved by you would mean more lending options regardless of your credit history. 

We are looking with a budget of £375k for a house, with ideal 15% deposit (5% us 10% family) looking to save a total of £25k which will allow £18k deposit plus £7k for fees, furniture, moving, etc (I looked at average costs for all the fees etc and chose the highest amount). We're saving £1.2k per month. Our outgoings are as low as we can get them at the moment. Car owned outright, no fancy TV packages, we take a holiday every other year, cut hair at home etc. I think our biggest expenses are our rent at £1610 (we live in Surrey) and our work travel which is £700 per month. 

Corona has put a dampner on savings but even so, the jump from saving 5% plus extras to 15% plus extras is huge, in terms of adding several years to our savings plan. We're currently on track to save £25k by this time next year. If we needed to instead save £61k for a deposit that could take us well over 4 years. 

Jumblebumble

Hi Gilliweed
Do not underestimate the importance of going to see a competent  whole of market broker as they often can put a case to the underwriters especially if you have been clean for 2 years . They may charge a success fee
I have been in your shoes a long time ago  and a kind broker sorted it out . The best £500 I ever spent as the lower rate of interest on remortgage has paid this back many times

MobileSaver

gilliweed said:

pinkshoes said:
Personally I would be looking at your incomings and outgoings in a SOA as with that sort of income you could easily save a HUGE deposit by next year.

We're saving £1.2k per month. Our outgoings are as low as we can get them at the moment. Car owned outright, no fancy TV packages, we take a holiday every other year, cut hair at home etc. I think our biggest expenses are our rent at £1610 (we live in Surrey) and our work travel which is £700 per month.

Something isn't right here, how can you still have £2.5k of old debt when you have such a large net monthly income. If you were serious and made an effort you could probably double your savings rate and in the process clear that old debt in weeks rather than a year.

As pinkshoes said, I really think you should visit the Debt Free Wannabe board and post a Statement of Affairs, I can almost guarantee people there will open your eyes to where your money is going and how you can improve your finances.

macman

As above. Why on earth are you saving £1.2K a month (presumably at near 1%), when you have debts of only £2.5K (and presumably at much higher interest than 1%) that can be cleared in 2 months?
I think you may be over-reacting to the missed payment markers, but in what way do you think that a payment that is one day late is not 'missed'?