Planning ahead...

TriggerHappy · 17 April 2017 at 8:46PM

Hi,

I've basically made a hash of my life up until about 4 years ago by running up debt I couldn't afford. That is all in the past now, I've been on a Step change DMP all this time and now I'm starting to save after having paid everything off!

So far I have a mobile phone which I pay monthly by DD, and also pay my rent and Council Tax by DD. I have savings but they're work place schemes (share save, share matching type stuff) and although I currently save £480 pcm I'm hoping to start saving a further £220 (so rounding up to £700) within the next few months...

I have 4 defaults which are settled and will drop off my credit file October 2019ish but I do have AP markers on my file from Vanquis, the last one being Feb this year...

My plan is to save for the next 5 years and use whatever I have after this time (neatly taking me to my 45th birthday) to either buy somewhere cheap and cheerful in a city I can afford or use it as a deposit for a house here in York...

In theory, after 5 years I should have a pot in the region of £45-50k...

My main concern is to not be stuck using my pension (which is also in hand so no worries there as I'm saving £600 pcm inc. my employers contributions) as that would be a nightmare...

So, any thoughts? Can you see any pitfalls with my plan? Am I likely to be in a position to even get a mortgage after 5 years? I just want to use the next 5 years to put myself in as good a position as possible

Thanks!

Lilla_D · 17 April 2017 at 9:02PM

Hi, your plan sounds good. If you stick to it and keep your credit history clean of late payments, APs, etc., then in 5 years' time there should be a good chance for a mortgage. Based on the current situation, not every lender may be able offer a mortgage and you may need to put down at least 15% deposit, so your scoring by the chosen lender is not too strict, but in theory you could get a mortgage.

ACG · 17 April 2017 at 9:48PM

If you had 10-15% now, I reckon you could do it.
In 5 years time you should be fine.

TriggerHappy · 18 April 2017 at 6:08AM

Hiya,

Cool, thanks for your reply. It's much appreciated as I'm in a decent place but in my head there's always those nagging doubts lol...

Not allowing for increases in property (which I have no idea about what it would be in 5 years time) then in theory if I went down the mortgage route then I should have about a 25% deposit.

Out of curiosity, does where I have my savings matter? I.e. If I wanted to try with Nationwide for example (my current account provider) should I try to have the money in one of their savings accounts for 6-12 months before trying or doesn't that really matter so long as I can evidence where it's come from?

Thanks again

TriggerHappy · 18 April 2017 at 6:09AM

Hi

That's really encouraging thank you

I'll ask you the same as I've asked Lilla D above;

Not allowing for increases in property (which I have no idea about what it would be in 5 years time) then in theory if I went down the mortgage route then I should have about a 25% deposit.

Out of curiosity, does where I have my savings matter? I.e. If I wanted to try with Nationwide for example (my current account provider) should I try to have the money in one of their savings accounts for 6-12 months before trying or doesn't that really matter so long as I can evidence where it's come from?

ACG · 18 April 2017 at 8:55AM

Potentially yes. 5 years is a long time away. Do whatever is financially best then in 3 years look to reassess. Criteria changes all the time, so the best lender for you today may not be tomorrow.

sammyjammy · 18 April 2017 at 9:15AM

Is there a particular reason why Vanquis didn't default you? You may be able to complain about that and get a back dated default meaning removal of the AP markers.

trailingspouse · 18 April 2017 at 2:28PM

Bear in mind that in 5 years' time you will be 50, and a standard 25 year mortgage will take you to 75 - which the lender may be unwilling to do, and which indeed you may not want to do yourself.

TriggerHappy · 18 April 2017 at 7:03PM

Hi AGC,

Thanks for the reply. Potentially I may not even go down the mortgage route - 5 years is a long time and I'm not precious about where I live especially, my main aim is to have somewhere to call home should I need it and if I bought somewhere cheap and cheerful then I may even find myself renting it out until I need it...

I really just want to put myself in as good a position as possible to achieve my long term goal

TriggerHappy · 18 April 2017 at 7:05PM

Hiya,

Dunno really... Vanquis has been quite close lipped about the whole process to be honest. To give them their due they have played ball with my DMP from day one and have never chased or hassled me which was great but now it's sort of hanging over me like a black cloud.

Maybe I'll give them a buzz and see what their response is.

Cheers

TriggerHappy · 18 April 2017 at 7:08PM

Hi,

No, sorry I think I've confused you. I'll be 45 in 5 years time. so was thinking I'd see if I could get a mortgage over 20 years.

But, you're right that it's something I need to consider carefully - hence the possible option of buying somewhere outright in a less desirable location and then saving for either a future move or just having a more comfortable future generally...

Planning ahead...

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