To think my life is buggered

[Clappingforjoy]

Bad credit and going around in a vicious circle of no no no to getting a small mortgage.
I have spoken to specialist bad credit mortgage brokers who say the £10.000 I have needs to be doubled as it's not enough due to my credit history.
Also been told minimum income requirement is 18000 and I only earn 14000.
I have kept up with rent payments for over 3 years and have not taken any credit in the last several years but still nobody will lend to me.
Up to date with everything but I'm still stuffed and too old and worn out to change it.

Do you pay into a private pension OP? Just thinking that if you do, use your inheritance of £28k as a deposit for a house, and then when you reach 55, take 25% of your pension as a lump sum which will then take care of the money you say you want in a savings pot. I know how you feel. I rented happily for years, but as I started approaching 50 I started worrying about what I would do once retired and not being able to meet my rent on a pension. It’s a worry.

I have one pension that's frozen with around 29k in and also a workplace pension

I’m not sure I’d want to be taking a new mortgage out at 50. I’m aiming to pay my mortgage off by 50.

It’s a big commitment at that age and may mean you’re working until you’re 75+.

It takes 6 years for any defaults to come off your credit rating, just be patient and don't default in any further payments or you'll be back to square one. Once the 6 years is over it will rocket up

Don’t feel down OP- well done you for sorting out debt and saving! There’s loads of us in the same boat.

DH and I can’t afford to buy, and with bigger deposits needed I now don’t know when we will

A few options to look in to:

Moving to a cheaper area- is this something you could/would do? Suburbs of the big cities up north/north wales/welsh valleys/parts of Scotland are all quite cheap for a 1 or 2 bed flat or even a small house.

Shared ownership schemes or Help To Buy? HTB only needs a small deposit and you get help with the equity. Another friend has successfully done shared ownership despite not having a huge salary.

Buy with a friend or relative?

Wait a few more years and keep saving?

I’m not going to suggest getting a better paid job. Great if you can, but it’s not always possible else we’d all be doing it!

Good luck. You’ll get there.

Also OP, if you’re renting privately put your name down on the waiting list for council and housing association properties - much lower rents and generally better looked after properties.

Also, if you want a mortgage so you have a property you can sell when you’re older if you’re a low earner you should get pension credit on top of your state pension, and/or maybe housing benefit- so don’t worry, you should be ok in your old age. Just Google Pension Credit and see what it says, also check how many years NI contributions you’ve got on the DWP website.

Well the first step is to remove yourself from the mortgage with your ex

Otherwise no, nobody will lend to you

So you have £10k and soon will have £28k more? If so that changes your position significantly, especially if you are wanting to buy at around £75k. In the l your position I'd be v looking at a deposit of at least 30 and keeping 8k max back.

You need to come off the other mortgage though, and keep working on your credit rating. Taking out some credit that you pay offb in the and in full would be helpful.

You LTV tends to go up in five per cents. 10k is still only 10% (13.3 in reality). If you can go to just short of 19k from your inheritance that's 25% and you become a lot less risky. Have you ever asked about playing about with the deposit figure? But you will need to remove your name from the other property regardless

Castlecrasher no I will only have 28k overall the 10 deposit would come off that.

You're complaining that you can't get a mortgage, when you literally already have a mortgage.
In your case that is a problem, but completely different to the one you stated.

Why only 10k deposit? What are you doing with the other 18k?

You only need to have the extra income for 3 months. If you really want this, what can you push yourself to do for 3 months to benefit your future self? Can you take calls at home, and apply for a customer service job for a Saturday and Sunday? If I were desperate, that's where I would be thinking.

Although if you do get a mortgage while still on the other one, you will be getting charged extra stamp duty as you own 2 homes. 5% on all I believe

To be honest, your life isn't buggered, but you are passively buggering up your own life, by not claiming the equity in the other property you own, not taking yourself off the mortgage and being weird about deposits.

There's no point in everyone trying to suggest ways to solve your problems when you could probably solve them yourself with a bit of gumption.

You sound like someone who creates trouble for themselves.

Won't put the 28k down as a deposit.

Won't remove themselves from the mortgage they're already on.

Ok then.

You won't get another mortgage until you get yourself off the one with your ex.

@AnaisNun

I wouldn’t fixate on ownership, OP. I really wouldn’t. It’s really not the be all and end all. I doubt I’ll ever own a house and feel fairly cheerful about it.

Could you use the money you’ve saved to buy a camper van or motor home, and then you can have lovely weekends away whenever you want? Or put it into high interest savings or your pension (probably more sensible?!)?

Either way, please don’t let this define you. It’s not at all a big deal unless you want to let it be

This. It really isn’t everything you know. There are benefits to renting so I would just relax and enjoy the fact that you can budget and not worry about repairs etc.

Honestly if I were you I'd buy £30k worth of shares in Pfizer or Astra Zenwca and sit on it for a few years! Sorry not very helpful but you need to help yourself here.

Take the equity out of the house you already co-own with your ex and/or get yourself off the mortgage.

Put the £30k down as mortgage and then you'll only need to take £45, 000 mortgage out. It's a no brainer really, why are you making life unnecessarily difficult for yourself?

@Gadzookery

In terms of age, some lenders will give mortgages these days up to age 75 - depending on occupation etc, so it may still very well be that you can get a full 25 year term which would spread the cost (all other things being equal) .

But in 17 years time OP will be retired on a far smaller income. Realistically, no mortgage lender will give a maximum mortgage in OP's circumstances.

To posters who are asking about putting more deposit down.
I still need money as backup in case I ever need a new car washers dryer etc anything really. I am on a low income so cant save or do I have much spare cash for emergencies.

I thought 10k deposit would be sufficient but obviously not.

The amount of deposit you have is a bit irrelevant. You are vanishingly unlikely to get approved for ANY mortgage because YOU ALREADY HAVE A MORTGAGE. Sorry for shouting but you don't seem to be acknowledging this most basic fact.

You only need a 10% deposit, on a £75k flat you should be good.

Being on the other mortgage means you'll have higher stamp duty and costs to buy.

You need to be removed from the other property. Or the monthly repayment will be taken into account for affordability, you'll have more chance with a 15% deposit.

Definitely claim as many benefits as you can as this income can be used for mortgage purposes.

What is so bad on your credit? Defaults can be ignored once they're 3 yrs old from registration. Ccj's maybe ignored from 3 yrs, bankruptcy and IVA's need to be discharged.

Are you dealing with brokers, or researching yourself?

You’re completely underestimating what a huge issue your name being on the ex’s property is. Unless your name can be removed from there ASAP, you buying your own home clearly can’t happen. No mortgage lender will touch you with a barge pole.

So time to put yourself first and sort that with your ex.