To save up to buy a house outright?

[applenblackberrysmoothie]

Two/three bed houses can be bought around here for less than £100,000.

If I put my mind to it I think I can raise this within six years. Is this a stupid thought or has anyone else done it?

[ZaraW]

Depends those houses may be worth a lot more in six years time.

[ImperialBlether]

Why would you not get a mortgage, buy the house now, then overpay?

[Roomster101]

It depends on whether you can live somewhere for free while saving the money. If not, with interest rates being so low it would make more sense to buy the house now with a mortgage and then pay off the mortgage within seven years.

[witsender]

I would mortgage on the really low rates available and overpay. There is no telling what house prices will do while you save, and interest rates on savings are non existent.

[StealthPolarBear]

Why not just get an offset mortgage

[applenblackberrysmoothie]

Imperial unfortunately I doubt I'll ever get a mortgage. I was a fucking IDIOT when in my 20s. I am ashamed of how many thousands I pissed up the wall. The hangover from this is an abysmal credit rating which obviously impacts me elsewhere. Added to which my job isn't secure.

[BenjaminLinus]

Making the assumption that you are a saver and already have enough for a decent deposit, I'd buy now unless you're living rent free for the next 6 years.

[RedSandYellowSand]

How much will that house be worth in 6 years?
Another vote for buy it now, and overpay as much as you can (select a mortgage that will allow unlimited overpayments).

[applenblackberrysmoothie]

It's good advice but I can't get a mortgage. I suppose I'm mainly just wondering if it's "doable."

[BenjaminLinus]

Ah, ok, bit of a massive cross post, crack on and save like a silly bugger, buy the cheapest you can tolerate, then more of a gentle save to get something you actually want.

[RedSandYellowSand]

Ah, cross posts. Sorry.
Can you work on improving your credit rating in the mean time. How long do credit hangovers last??

[applenblackberrysmoothie]

I'm not sure! I've heard six years but mine is just mortifyingly awful: think I've done everything other than go bankrupt

[SillySongsWithLarry]

If you can't get a mortgage then save, save, save and buy outright in 6 years. It's a great idea. Your credit rating will be squeaky clean by then even if you are bankrupt now.

[justdontevenfuckingstart]

apple do you KNOW that you can't get a mortgage? I had a horrific credit history when with my exh so didn't want to go on the mortgage with oh because i assumed it would be a no. Turned out I was a good bet. I was really surprised.

[AnthonyPandy]

There's people doing this on mse

[applenblackberrysmoothie]

I don't know for certain but I've had CCJs (multiple) and defaulted on a mortgage before, plus numerous defaults on loans and payday loans and credit cards and probably other things I've forgotten.

My credit is Very Poor (unsurprisingly!)

[scaredofthecity]

It does pop off though. My DH got into a lot of trouble at uni and we got a mortgage no problems. I think it took 6 years to disappear.
A friend's DH had multiple defaults and they were able to buy after 3 years. They just had to provide a few more bank statements etc. And didn't get the best rate but got a fairly decent rate through a broker.

[justdontevenfuckingstart]

apple I had a repossession, CCJ'S multiple also paydays etc. I got myself a credit card, put about £100 on it and paid the minimum every month to get the tick. Everything dropped off after the six years and when we went for our mortgage our advisor said I actually had one really clean record (we went for non standard construction with the Halifax so bloody hard) so it certainly can be done, depends how far into your debts you are I suppose.

[YouMeddlingKids]

Well, it's not a bad plan. Save like crazy, but review the credit/mortgage situation annually. For example in 2-3 years you could have enough saved and good enough credit for a 50% mortgage, which would still give you security.

[Wando1986]

We would have done it but were silly when we were 19/23 respectively and took out a Northern Rock mortgage

[applenblackberrysmoothie]

You lot are amazing.

justdont you've actually given me so much hope that my idiotic behaviour (seriously I look back and am WTF at myself!) won't impact my future as much as I thought.

[PurpleMinionMummy]

Not stupid at all. It makes sense to avoid paying interest on a mortgage if you can. We've found a lot of companies restrict you a 10% overpayment each year though or you may get charged for paying it off early. You'd need to sit down and look at figures really to work out if you'd be better off paying the interest and any other potential charges with the mortgage or staying as you are (paying rent possibly?) and saving.

[ImperialBlether]

But you shouldn't pay the minimum off a credit card - pay it off in full in order to boost your credit ratings.

[Babyroobs]

I'd save for a couple of years and get a decent deposit saves , say £30- £40k. This then opens up the best mortgage deals to you if you have a bigger deposit. Hopefully your credit score will have improved by then also. try going through a broker for the best deals.