Mortgage end of next year or am I being too ambitious?

sim2335

my credit score is poor however I have no ccjs defaults, but do have about 8 missed payments for nationwide 4 for each loan

I work for a bank full time and been ther about 4 years

Also when I went university I had lots of different accounts over 10 years now, this has now dropped off, however none of those banks would give me mortgages   would they?

All debts will be cleared end of this year except nationwide and student loan 10000

Nationwide – 2

700 arrears (now 2000 arrears as they internally added on during payment hoilday)

End  of payment hoilday should I let them rewrite the loan and just pay 200 or less a month get arrears transferd and use the money to clear other debts, however old debt would show as settled.

At least then only have one debt to worry about 

Or continue  paying 200 a month and slowly clear the arrears within 3-4 months 

Next year my mum will help me with 10% deposit up to 10k, plus any savings I have and all debts should be cleared  

Summary

Monthly Budget Summary	Amount(£)
Total monthly income	946
Monthly expenses (incl. HP & secured loans)	414
Available for debt repayments	532
UNsecured debt repayments	327.69
Amount left after debt repayments	204.31

Personal Balance Sheet Summary	Amount(£)
Total Assets (things you own)	5,000
Total Secured & HP Debt	-0
Total Unsecured Debt	-12,581.19
Net Assets	-7,581.19

Household Information

Number of adults in household	3
Number of children in household	0
Number of cars owned	1

Income, Expense, Debt & Asset Details

Income	Amount(£)
Monthly income after tax	946
Partners monthly income	0
Benefits	0
Other income	0
Total monthly income	946

Expenses	Amount(£)
Mortgage	0
Secured/HP loan payments	0
Rent	0
Management charge (leasehold property)	0
Council tax	0
Electricity	0
Gas	0
Oil	0
Water Rates	0
Telephone (land line)	0
Mobile phone	22
TV Licence	0
Satellite/Cable TV	0
Internet services	0
Groceries etc.	100
Clothing	10
Petrol/diesel	25
Road tax	12
Car Insurance	50
Car maintenance (including MOT)	25
Car Parking	10
Other travel	10
Childcare/nursery	0
Other child related expenses	0
Medical (prescriptions, dentists, opticians etc.)	10
Pet Insurance/Vet bills	0
Buildings Insurance	0
Contents Insurance	0
Life Assurance	0
Other Insurance	0
Presents (birthday, christmas etc.)	10
Haircuts	20
Entertainment	40
Holiday	40
Emergency Fund	30
Total monthly expenses	414

Secured & HP Debt Description	Debt(£)	Monthly(£)	APR(%)
Mortgage	0	(0)	0
Secured & HP Debt totals	0	-	-

Unsecured Debt Description	Debt(£)	Monthly(£)	APR(%)
Nationwide	3780.99	108.5	2.9
Nationwide	3730.2	89.19	2.9
Aa	1500	50	6.5
University	1700	10	0
Dwp	700	20	0
Likely loans	1170	50	59.9
Unsecured Debt totals	12581.19	327.69	-

Asset Description	Value (£)
Cash	0
House Value (Gross)	0
Shares and bonds	5000
Car(s)	0
Other assets (e.g. endowments, jewellery etc)	0
Total Assets	5000

MovingForwards

Ignore the credit score and rating as it's not seen or used by lenders, it's the credit history they see and use when assessing applications.

You haven't said what your actual salary is as I know from the DFWB board you are paying a lump sum into shares where you work.

How much are you looking to spend on a property?

What year are the missed payments from?

Will the other two adults be moving with you?

sim2335

MovingForwards said:

Ignore the credit score and rating as it's not seen or used by lenders, it's the credit history they see and use when assessing applications.

You haven't said what your actual salary is as I know from the DFWB board you are paying a lump sum into shares where you work.

How much are you looking to spend on a property?

What year are the missed payments from?

Will the other two adults be moving with you?

My actual Monthley   wage is 1568, after tax

Missed payments from start of 2020

missed payments from 2019 and 2020

im looking to buy a property from 90k 150k, if I can afford more then I will

No they will not move with me as there my parents 

my friend the one I lent money too said he had lots of payday loans and still got a moragte with his wife how’s that possible

MovingForwards

It's pre-deductions affordability is based on. Generally 4.5x annual income is the mortgage loan amount plus your deposit on top. I'm not sure how it would work with your £500 per month share purchase from your wages.

Regarding your friend, depends on the lender as each lender has its own criteria, which is changing quite regularly at the moment.

Hopefully one of the resident brokers will be along later to comment.

[Deleted User]

OP - Id stop “listening” to friends and believing what they say or lending them money, and take your own independent advice

Kiwistrawb1990

sim2335 said:

MovingForwards said:

Ignore the credit score and rating as it's not seen or used by lenders, it's the credit history they see and use when assessing applications.

You haven't said what your actual salary is as I know from the DFWB board you are paying a lump sum into shares where you work.

How much are you looking to spend on a property?

What year are the missed payments from?

Will the other two adults be moving with you?

My actual Monthley   wage is 1568, after tax

Missed payments from start of 2020

missed payments from 2019 and 2020

im looking to buy a property from 90k 150k, if I can afford more then I will

No they will not move with me as there my parents 

my friend the one I lent money too said he had lots of payday loans and still got a moragte with his wife how’s that possible

I've got a high street mortgage with a history of lots of payday loans over 4 years. 
But I had 4 years of no missed payments or any other adverse either. 
I think you will struggle with that many missed payments. 
A broker will probably be able to place you but it'll cost you and it won't be cheap. 
If you're living with your parents, stay there a little longer, save and ensure you keep up with your payments. How are you expecting to keep up with a mortgage if you've got 8 missed payments from this year alone? 

getmore4less

reality check 
end of next year is 15months 

gross salary is around £22k  max mortgage will be ~£90k  but you have this £500pm going out to the share scheme which will impact the amount you can borrow a lot.

You have £12.5k of debt to clear and save for a deposit(£15k-£20k) with £500pm spare

15 months @ £500pm is £7.5k  where is the other £5k coming from?

deposit, there might be 90% LTV mortgage then but really need to be aiming for 85% LTV thats another £5k on top of mums gift(it is a gift?)

On you current SOA you need to magic up around £670pm to hit your target of debt paid off and a deposit.
(that's not counting the interest on the debts



You need to re think this share scheme as you are borrowing a lot of money to fund that some at 60% it needs to be a good scheme and a company that will see a lot of share appreciation to match that.
 

sim2335

It wasn’t my debt so I missed the payments as I was waiting for my brother to be able to afford it, and before I missed he always use to pay me

Now I’ve took repsoiblity I would never miss a payment, I didn’t realise miss payments are even that bad as long as it’s paid off

That reminds me I had 4 missed payments on my aa credit card too this year, up to date now and will be clearEd in 2 months 

In terms of the debts, hopefully I will get anthor bonus at work next year which was 2k

This month I did overtime so will 1600 to pay of debts so likely loans will fully be cleared 800 if paid of early and and a big Chuck of my credit card.

On top if my friend give me 110 a month that will go on debt,from December or any large chunck he may give me(owes me 6k)

Hopefully my brother will be able to give me 200 a month maybe more  he’s done it over a year until he lost his jobs (both nationwide loans are his, in my name)

Also before I didn’t touch nationwide, brother just use to pay 200 a month now once all other debt is cleared I’m gona start hitting that with chucks form my slarey and his hopefully so could be paying of 500-600 a month maybe even more.

Also my mindset has totally changed before it was I just pay my debts he pays his debts.Now it’s I want to clear ALL debts in my name ASAP. 

Expect student loan, I won’t do but would like to if I was rich

getmore4less

You asked a question and only provided part of the relevant  information.

Still lots of If's

the string of very recent  missed payments is not going to help and may mean adverse credit lenders on very high rates.

tim_london

From quickly scanning your other thread - yes I think paying off your debt in 15months is ambitious, but doable.  
I echo the others, your share scheme is the biggest elephant.  Not only are you taking a big risk but it's hard to give risky hope when there is clearly an against the norm sensible approach in your money management.  I'd say cash out the shares now in a way that is most tax efficient, pay off the debt and limit the interest payment.  £12k - £5k (realistically £3-£3.5 after tax), then full £500 towards debt each month, then you can be debt free in 15-18months.

Can you get a mortgage in 18 months?  The answer is yes but the question is should you?

You then have no savings at 18 months.  Your outgoings at the moment has no council tax (£100p/m), home insurance (£10p/m), utility bills (£50p/m), TV licence (£12p/m), Water (£12p/m) and anything to keep you safe if things break in your home.    You may become a homeowner but you'll still be hovering over the poverty line.  I can't say it is worth it.

With so many missed payments assuming the market is still like what it is now you'll be paying 5-6% mortgage rates whilst others pay 1.3-3%.  This is a difference between affording a £70k house versus a £100k house.  And it's not just about affording, it is also the speed you pay towards the house versus lost as interest.  And this is where the catch is:

You getting a mortgage at 18 month:  Homeowner - Got subprime mortgage w high interest - smaller property - mortgage payment mostly goes to interest - 5 years later still owe the bank around same amount - at constant fear of negative equity - no room for any surprises in life that requires extra cash - always on edge - not enjoying life.

You paying off all debt at 18months then add 2 years of savings:  Homeowner - Major high street mortgage low interest - bigger property - more of mortgage payment goes towards property equity - 5 years later at respectable LTV - have the flexibility to draw money out (further advance) against the property if emergency arises - with trustworthy backup comes confidence - enjoy life.

Your choice though.

sim2335

I like option 2.
however what if I choose option 1 but rent it out then moved out in 2 years?
at least the I will be on property ladder, and everything will be paid for by tenants until I move in