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

sharp910sh

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.

Something is not adding up as others have said, if you are earning £115k a year between two people you should be able to save a lot more than that. I would go to the debt free board and present your SOA. Even with the £1600 rent and £700 in transport, it does not seem right to me. 

pinkshoes

gilliweed said:

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. 

Are you sure? Something doesn't add up.

A joint salary of £115k, so we shall go with £55k each to do the numbers and underestimate.

Take home pay approx £6000 (this is including 2 x student loan payment and both paying 8% into a pension!)
Travel £700
Rent £1610
Food £400
Gas/Elec £100
Council Tax £100

Total outgoing = £2910.

So from the figures you have given, you have a spare £3100 a month. If you are only saving £1200 of this, where is the other £1900 a month going?!?!?!

I think your next move, before even contacting a broker, is to have a good look at your finances and personal spending (complete a SOA), because to get into so much debt on such high salaries is unusual. It is a really useful process and might make you highlight some areas of spending that are higher than expected. 

macman

Is that 115K income before or after tax?

gilliweed

I currently have a credit card that will be paid off by the time we come to buy (0%, so I'd rather put money elsewhere and just get it paid off by the time the 0% ends) Also missing pension contributions, student loan repayments, savings like emergency fund, other general expenses like entertainment, petrol (travel mentioned previously is only train fare), gifts like Christmas and birthdays, and holidays (though as I said we go every other year so we can have a nicer holiday).

I'm fairly comfortable with the amount we're saving. Of course if we do need to go to a 15% payment instead of 5% we would have to increase savings but I 100% know where our money goes, nothing in a SOA would surprise me. I budget through YNAB every penny we have.

As for being in debt on high salaries... We are not hugely in debt. £2.5k on my credit card and £3k my boyfriend has that we aim to pay off soon. I accrued my debt around 2016-17 on a much lower salary and have paid off all of it bar the above. Our debt is only decreasing, we haven't added to it at all. 

Unicorn_cottage

@gilliweed Have you heard of the FIRE movement - you should be saving a much higher percentage of your salary

pinkshoes

gilliweed said:

I currently have a credit card that will be paid off by the time we come to buy (0%, so I'd rather put money elsewhere and just get it paid off by the time the 0% ends) Also missing pension contributions, student loan repayments, savings like emergency fund, other general expenses like entertainment, petrol (travel mentioned previously is only train fare), gifts like Christmas and birthdays, and holidays (though as I said we go every other year so we can have a nicer holiday).

I'm fairly comfortable with the amount we're saving. Of course if we do need to go to a 15% payment instead of 5% we would have to increase savings but I 100% know where our money goes, nothing in a SOA would surprise me. I budget through YNAB every penny we have.

As for being in debt on high salaries... We are not hugely in debt. £2.5k on my credit card and £3k my boyfriend has that we aim to pay off soon. I accrued my debt around 2016-17 on a much lower salary and have paid off all of it bar the above. Our debt is only decreasing, we haven't added to it at all. 

I included pension and student loan payments in my calculation.

If you think you are saving enough and can account for the extra £3k a month, then fair enough, but smells a little like denial to me.

You really do have a lot of unaccounted money being spent. Completing a SOA is the way forward...

[Deleted User]

Christ poor OP - beaten up for asking a simple question, told to save more, reduce debt etc !! 

I’ll answer your question. Firstly write a nice complaint to FD. Explain what has happened, and how you feel this is rather unfair, and in the circumstances would they please delete these missed paid markers. Now they may of may not, but if you dont ask you dont get. 

Wait till the files update if they do agree to remove and then you can speak to a broker or go to Barclays to get an AIP done 
If they dont agree then dont despair.  Im sure a good broker will find something for you. 

bucksbloke

Regarding the missed payments - if you did pay the amount on the day it was due. Then place a notice of correction on each file. The lender will have 28 days to reply to it, and many of them will change the history if there is evidence it was paid on time. 

sharp910sh

Something is still not adding up, you are spending a lot and could save way more money as pinkshoes has said. I say present your SOA. You should easy be able to afford a property without using spring board on a salary of £115k and a deposit greater than 5%. Clearly something doesn't add up, £115k is not a small salary between two people. 

poohjj

bigjav said:

Remember the main criteria is affordability. I managed to get a mortgage with a ‘fair’ score on Experian. With 4 defaults for either unpaid phone contracts or a credit cards with multiple missed payments👍

Hello, 
Could please confirm what mortgage lender you used in this suitation.
I have 3 late payments and would be really helpful for some lenders that would consider me