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The property ladder...

ste

ste

TK Veteran
Why do they make it so difficult for people to get on the property ladder? ... our credit history isn't great as we've missed a credit card payment here and there etc. as i'm sure a lot of other people have but we've been in our current rented property for 10 years and in that time, we've paid over 45k cash in rent costs (no housing benefit) and we've never been behind with our rent. That 45k would have paid a huge chunk of a mortgage rather than it being dead money.

The mortgage advice i've found online mentions a lot about financial risk for the lenders but I don't understand why it's such a big risk when, if you fall behind with your payments, they can re-possess the property.

I'm interest on other people's insight.
 
Yeah daughter in same situation etc because she runs her own business shes had a right job proving her income and outgoings etc.
Shes been living with me for a long time now and is registered on electoral register etc according to mortgage lender is a big points scorer on your credit history etc.

Then comes the big BUT because all shes basically had credit wise to check is a mobile phone contract with only 2 late payments that she got when changing banks and it cocked up her direct debit etc they said it makes a massive impact on your score etc.
So to overcome this she applied for a small credit card to help build her score back up and made small purchases with it and made sure the balance was paid in full at end of month her score steadily increased etc.
My dad gave her 20k to put to a deposit etc and its been a rite hassle trying to get a decent mortgage etc.
 
What i understand is you need to get your self into a lot of debt and pay each week to get a good credit score,People who save up and pay cash for things are not what they want.
 
pieeater2015 said:
What i understand is you need to get your self into a lot of debt and pay each week to get a good credit score,People who save up and pay cash for things are not what they want.
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Yeah as stupid as it sounds your dead right which a lot of people find mind boggling
 
Its nuts that in order to be classed as a good credit risk, you have to have taken out a few things on credit and kept up the payments and paid them on time, if you have no credit history then you are a bad credit risk, two of mines have bought homes with their other halfs, another two are trying to get on the ladder, currently private renting and looking to buy, I have another two living in housing executive propertys with their partners, but they are all working so their monthly rent to the executive is £500 plus, an amount that you would pay for a mortgage for a 2 or 3 bedroom decent property.
 
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