First Time Buyer - Advice much Appreciated

edited 30 November -1 at 1:00AM in Mortgages & Endowments
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davesmith_2davesmith_2 Forumite
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edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi

Just wondered if there were any experts who could give us some good advice please.

My partner and I have opened a Nationwide save to buy account which gives the possibility for a 5% mortgage, although to be honest we are not sure if we will be able to afford a big enough deposit to actually buy so renting might be the most realistic way forward.

We will have around £6000 as a deposit for a £80,000 house plus we have extra for fees etc.

But the other thing that worries us and may stop us getting a mortgage it that neither of us really have a credit history, I am 28 she is 26, we have never had loans, overdrafts, etc only bank accounts so will this be a big problem?

Many Thanks

Replies

  • kingstreetkingstreet Forumite
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    Get a credit card and use it to build some positive history while you are saving. Pay it off in full each month, so you pay no interest.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ThrugelmirThrugelmir Forumite
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    davesmith wrote: »
    But the other thing that worries us and may stop us getting a mortgage it that neither of us really have a credit history, I am 28 she is 26, we have never had loans, overdrafts, etc only bank accounts so will this be a big problem?

    Many Thanks

    Using the NW account will build you an adequate credit profile.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • Get a copy of credit reports, and book an appointment with the bank to see if there is a chance for a mortgage, however I think they are very strict with their 95% ones
    House deposit £2800/£10000
    :j£7200 in 24 months = £300 a month:j
  • kingstreetkingstreet Forumite
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    Thrugelmir wrote: »
    Using the NW account will build you an adequate credit profile.
    I thought it was only a savings account?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • thank you for the help

    No never had a phone contract, never had anything other than savings and current accounts with Halifax.

    I bought a credit report the other month and there was hardly anything on it lol.
  • LokoloLokolo Forumite
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    kingstreet wrote: »
    Get a credit card and use it to build some positive history while you are saving. Pay it off in full each month, so you pay no interest.

    This is a good idea as long as you are still saving. If you are planning on buying in a months time then not so useful.
  • kingstreetkingstreet Forumite
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    Lokolo wrote: »
    This is a good idea as long as you are still saving. If you are planning on buying in a months time then not so useful.
    Yes. In principle, you are correct.

    Given they have insufficient deposit for the purchase price mentioned and the Nationwide STB appears to be a recent addition, I guessed we are some months away from a possible application.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ThrugelmirThrugelmir Forumite
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    kingstreet wrote: »
    I thought it was only a savings account?

    Old fashioned lending principles.

    Potential borrowers demonstrating an ability to save on a regular basis is a major plus. As it shows management of personal finances.

    Some of us remember when saving with the local building society for 2 years was the way of qualifying and securing a mortgage. ;)

    Something I suspect will return in a different form in the future. As lenders return to funding mortgages from retail rather than wholesale money markets. Which was the case until 2000.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
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