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  • FIRST POST
    • jimbogarner
    • By jimbogarner 12th Mar 18, 11:05 AM
    • 7Posts
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    jimbogarner
    Credit Rating for buying a house
    • #1
    • 12th Mar 18, 11:05 AM
    Credit Rating for buying a house 12th Mar 18 at 11:05 AM
    Hi,

    My partner and I are going to looking to buy a house towards the end of 2018 (September-ish), however, I just had a quick question on how my credit rating/chances of getting a mortgage may be affected by me potentially getting a new job. To give you some context around why I am concerned....

    My partner is a teacher and is also moving job, however, due to the nature of her role (term times), she will start her new job in September as well.

    Her car recently died on her so we took a car finance deal out for her to purchase a new car, to add to that, my car is very high mileage and although I am trying to run it into the ground, I may also need to look at changing it.

    Our combined gross income is c.63k, we currently are saving c.400-500pm but are currently paying 650pm rent (plus then bills etc.) & 175pm for my partners car finance.

    Between the 2 of us we have 3 credit cards, 2 of which have nothing on them (with a combined credit limit of 7k), the third has about 2k on it but a credit limit of 3k (I paid for our honeymoon on this as I heard it was good to have atleast something on a credit card).

    So... all in my questions are: #1 Should I persevere for 6 months in my current job until we get a house sorted and/or how badly would my credit rating be affected by being in a probationary period during applying for a mortgage? and #2 if push come to shove and I had to replace my car as well, how bad would 2x new finance deals look?!

    Thanks,

    James
Page 1
    • zx81
    • By zx81 12th Mar 18, 11:10 AM
    • 16,800 Posts
    • 17,811 Thanks
    zx81
    • #2
    • 12th Mar 18, 11:10 AM
    • #2
    • 12th Mar 18, 11:10 AM
    You don't have a credit rating. It's all about how lenders view you and this is one for a broker, to ensure you place your application with a lender who will look more kindly on new jobs.

    It's probably be wise for at least one of you to be more embedded in a role though.

    Don't take out new finance deals. Pay cash for cheap cars.

    And clear that credit card. Looking like you can't afford to clear a 2k balance, unless at 0%, suggests you can't afford a house.
    Last edited by zx81; 12-03-2018 at 11:16 AM.
    • jimbogarner
    • By jimbogarner 12th Mar 18, 11:18 AM
    • 7 Posts
    • 0 Thanks
    jimbogarner
    • #3
    • 12th Mar 18, 11:18 AM
    • #3
    • 12th Mar 18, 11:18 AM
    Sorry, yeah forgot to mention it is 0% for another 18 months.

    My issue with paying for a cheap car is I drive a lot of miles for work, I work over an hour away from my house so I am doing up to 30k miles per year, so would need to get a lower mileage/reliable/economical car. My current car is not on finance, I purchased this outright.

    Thanks for your help
    • zx81
    • By zx81 12th Mar 18, 11:21 AM
    • 16,800 Posts
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    zx81
    • #4
    • 12th Mar 18, 11:21 AM
    • #4
    • 12th Mar 18, 11:21 AM
    Your broker will be able to tell you how much all the additional car finance will hurt your affordability and which lenders will be nervous about a lot of unsecured debt.

    You may find it's better to buy outright and reduce your deposit a little.
    • MEM62
    • By MEM62 12th Mar 18, 2:48 PM
    • 1,572 Posts
    • 1,193 Thanks
    MEM62
    • #5
    • 12th Mar 18, 2:48 PM
    • #5
    • 12th Mar 18, 2:48 PM
    My issue with paying for a cheap car is I drive a lot of miles for work, I work over an hour away from my house so I am doing up to 30k miles per year, so would need to get a lower mileage/reliable/economical car.
    Originally posted by jimbogarner
    Your assumption that you need to buy an expensive car in order to get one that is economical and reliable is incorrect.
    • jimbogarner
    • By jimbogarner 12th Mar 18, 4:14 PM
    • 7 Posts
    • 0 Thanks
    jimbogarner
    • #6
    • 12th Mar 18, 4:14 PM
    • #6
    • 12th Mar 18, 4:14 PM
    I am not saying that all older cars are unreliable, I am saying that the chances of an older car breaking down, in the main, is more likely than that of a newer one
    • radoslaff
    • By radoslaff 12th Mar 18, 4:33 PM
    • 109 Posts
    • 34 Thanks
    radoslaff
    • #7
    • 12th Mar 18, 4:33 PM
    • #7
    • 12th Mar 18, 4:33 PM
    You definitely need to talk to a Mortgage Advisor. At 63k a year and saving only 400-500 a month I think that you have much more spending than you say and you could cut part of it. But this is the job of the advisor, to advise you what can you do.
    The journey of a thousand miles begins with one step.
    • Lauralou79
    • By Lauralou79 12th Mar 18, 7:11 PM
    • 191 Posts
    • 173 Thanks
    Lauralou79
    • #8
    • 12th Mar 18, 7:11 PM
    • #8
    • 12th Mar 18, 7:11 PM
    Just be aware if you gain more credit it all could reduce the amount that banks will lend to you.
    Also some may not look too kindly on both being in brand new jobs. Maybe use a broker to help you find appropriate lenders.
    • DCFC79
    • By DCFC79 12th Mar 18, 7:59 PM
    • 31,601 Posts
    • 19,942 Thanks
    DCFC79
    • #9
    • 12th Mar 18, 7:59 PM
    • #9
    • 12th Mar 18, 7:59 PM
    You should relook at your finances, you should be saving more than the 400-500pm on a combined income of 50k.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • bazzyb
    • By bazzyb 12th Mar 18, 8:33 PM
    • 1,191 Posts
    • 3,274 Thanks
    bazzyb
    I work over an hour away from my house so I am doing up to 30k miles per year, so would need to get a lower mileage/reliable/economical car.
    Originally posted by jimbogarner
    You can easily get a car that will last for 6 months / 15k miles without taking finance out for it. Then you can reassess the situation once you have bought the new house.
    • MEM62
    • By MEM62 13th Mar 18, 11:05 AM
    • 1,572 Posts
    • 1,193 Thanks
    MEM62
    I am not saying that all older cars are unreliable, I am saying that the chances of an older car breaking down, in the main, is more likely than that of a newer one
    Originally posted by jimbogarner

    Statistically, that is not the case. Maybe it might have been 'back in the day' but not with more modern cars.
    • Candyapple
    • By Candyapple 13th Mar 18, 11:33 AM
    • 2,849 Posts
    • 2,172 Thanks
    Candyapple
    Your combined salary is 63k meaning you both bring home circa 4k every month.

    Rent: 650pm
    Partner's car finance: 175pm
    Bills: let's say 250pm
    Food: let's say 200pm
    Credit card repayment: min repayment at 2% of 2k = 40pm
    Total: 1315

    You are only saving 4-500pm, where is the other 2.2k going??

    You could both quite easily be saving 3k per month if you wanted to.

    Are you moving to a new area? Are both your jobs going to be in the area you move to?

    How much do you have saved at the moment? How much of a deposit will you need?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
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