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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Mortgages

28 replies

Ajobforlife · 05/04/2012 23:16

AIBU to feel sad and annoyed that my DD and her partner of 4yrs who have both worked hard and saved nearly 20grand!! got no debt, pay all their bills and owe no-one anything can't get a modest mortgage.

OP posts:

fedupofnamechanging · 05/04/2012 23:18

Do they have a credit history? Might be worth getting a credit card and using it and paying the bill promptly for a few months, to establish that they are a good credit risk.

It's silly to have to do that, but it might help.

Rhinestone · 05/04/2012 23:19

YANBU at all but are you sure they can't? That's a pretty decent deposit. How much is the place they're looking to buy?

AgentZigzag · 05/04/2012 23:23

They could look for a smaller place?

Or one that needs doing up?

I can't believe they can't find anything, it's a buyers market isn't it? (which makes me sound like I know more than I do about the housing market )

WorraLiberty · 05/04/2012 23:25

fedupofnamechanging · 05/04/2012 23:25

Are they both is secure employment (if that's even possible, any more)?

AgentZigzag · 05/04/2012 23:28

Pffffffft housing shmousing, s'only money

Original poster

Ajobforlife · 05/04/2012 23:29

DD has had a credit card for 8 years ( joint for the last 4 ) and clear it every month, they seem to have done all the right things and are beginning to lose heart, I know property ownership isn't for everyone but they have paid 24grand in rent over 4years on a small flat and feel they have nothing to show for it.

OP posts:

fedupofnamechanging · 05/04/2012 23:30

Have they considered shared ownership schemes offered by some housing associations. It was how I bought my first house and was literally the only way I could have ever got a mortgage at that time.

fedupofnamechanging · 05/04/2012 23:31

Also, they need to get a copy of their credit reports - just in case there is incorrect information on there or they have been the victims of identity theft, which has unknowingly screwed up their credit rating.

only4tonight · 05/04/2012 23:32

How much are they looking to get?

TheEternalOptimist · 05/04/2012 23:33

Are they looking at a very expensive house? Does the bank want a larger deposit?

Sounds a bit strange. Have they tried different banks?

AgentZigzag · 05/04/2012 23:34

Are you sure you get the full picture though OP?

I'm not sure I'd discuss all my financial transactions with anyone.

They could have things they owe that they've not told you about, or have good reasons for why they don't want to buy a house, but maybe don't want to let onto you given that you feel they're wasting their money paying rent.

However close you are to somebody they can still want you to have a particular 'image' of them, not necessarily for any malicious reasons because it could be because they love you and don't want you to feel let down.

That's only guessing though and probably doesn't apply at all to your situation, just thinking aloud

oreocrumbs · 05/04/2012 23:42

I think the deposit might not be enough. A lot of lenders are looking for 25%, so if they want a 100k house they need a bit more.

Have they shopped around? Or tried an independant mortgage advisor - I think they are becoming more and more important in the current climate as the mortgage market is getting confusing.

I presume they must have good enough wages to have been able to save that much whilst paying rent so all I can see it being is the deposit or something screwing up the credit reports.

Original poster

Ajobforlife · 05/04/2012 23:48

I fully understand that they dont tell us everything (thats how it should be ) we try very hard not to push our views on them. (its them that feel they are spending good money on rent) although I do agree. I am not too old!!! to remember what it was like to have well meaning, but annoying parents. They haven't got a particular house in mind but are trying to get a mortgage facility in place so they are in a strong position when they find 'the one' believe me, we are not talking mansions here! :)

OP posts:

Heswall · 05/04/2012 23:51

Be glad they can't get saddled with too much debt.
In 2 years time they will be in negative equity if they buy now, house prices aren't going anywhere but down in real terms, they are being saved from themselves if you ask me, lucky them !

RedHelenB · 05/04/2012 23:53

Could you be guarantor perhaps? My Grandma did that for me when I didn't have a permanent job.

AgentZigzag · 05/04/2012 23:55

I tried my hardest not to imply you were a pushy parent and you really don't sound one, but just knowing how your parents think even when they don't say anything can shape the way you 'spin' things when you talk to them IYKWIM?

They're probably being sensible and knowing that the cash you need for a house isn't just for buying the money pit, it's all the extras you get used to the landlord paying for if you're renting.

Auntiestablishment · 05/04/2012 23:57

Can they not get one AT ALL? Or can they not get the amount they want/need?

Vinomcstephens · 06/04/2012 00:10

Well, I'm a mortgage adviser so if you want to pm me for any advice I'm more than happy to help (no, I don't charge!) I'm genuinely surprised since they have a fantastic deposit (which, if they're not buying a mansion, could easily be a 15% deposit which is a huge advantage for first time buyers - their overall credit score will be lower if they "only" have a 10% deposit) and a good credit history - in fact, if that really is the case, I find it impossible to believe they can't get a mortgage unless they're on incomes that won't cover the loan amount they want? Do pm me if you wan any more info!

thekidsrule · 06/04/2012 00:21

hi,you say they have a house in mind,would it not make more sense in lots of ways to look at flats

sorry if ive overloked something

Original poster

Ajobforlife · 06/04/2012 00:22

No probs AgentZZ. I agree with you on how knowing the way your parents think shapes the way 'kids' think . Its probably as hard being a 'grown kid' as being a parent :) !!!! and yes it is all the other stuff that probably is the 'deal breaker' life aint easy!!! Its not the end of the world and they can keep on looking . I was just feeling sorry for them. Always a mum eh! :)

OP posts:

Stella92 · 10/11/2021 09:29

Hi everyone ! I have a question ( which tbf I should probably just ask my broker 😂) but my partner and I are applying for a mortgage ( we already have an offer in principle) but now doing the full application. Just wondering if the bank also checks that we have the money for the SDLT? Because we currently don’t . We have the money for deposit and fees but we know that by the time completion comes we will have money for SDLT as well. Does anyone have any experience with this? Mortgage will be with Kensington mortgages.

BarbaraofSeville · 10/11/2021 09:36

What's your definition of a modest mortgage? They need to meet affordability rules and it's probably best if their deposit is at least 10%, preferably 15-20 as the interest rate will be lower and they'll need some money for fees, but in plenty of places they could buy for around £130-150k for a 1-3 bed house/flat and qualify for the mortgage required as long as they both work full time even if they're on NMW.

Either there's something about their finances that you are unaware of, or they're looking in an expensive area.

ErickBroch · 10/11/2021 09:48

This is confusing. You're saying they have a deposit and good credit history and they can't get a mortgage? Something isn't adding up. Either they aren't telling you the truth or you are misunderstanding something.

Their deposit needs to be 10% of the total house price and salaries enough to afford payments.

JennyDune · 10/11/2021 09:55

After 4 years, thats not really a good amount tbh.

2 people who are saving together for a house for 4 years, should have been able to save more. Assuming they do overtime, live below their means, and have made good financial decisions up to that point. (E.g. planned family appropriately, avoided holidays, etc).

Even on minimum wage, I would expect more than that. (I did it myself a long time back).

But tbh, with a £20k deposit and high loan to value ratio, they should be able to buy a studi flat surely somewhere. Thats how you get on the ladder.

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