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It has been a long time since I wrote a review. Infact three years now, but I am back on the scene.
I am writing today about my current experience with the mortgage crisis. It is so happening at the wrong time.
I currently live at home with my parents and I am in a great relationship and me and my partner want to buy one of these shared ownership properties that are currently being built down the road from where I live now.
I have done all the registering, got approved and chased to get my name at the top of the list for a place as I knew this particular site would be extremely popular.
I am currently waiting for the prices to be released which they tell me will be in the region of £150000 gp so half of that is £75000. So were going to need a mortgage for 750000. Now when I spoke to a financial advisor in September to get an idea and they were prepared to lend us up to 87000 so mre than enough. Since then we have both had slight payrises so I thought great we wouldn't have any problems getting it.
Now last week when First Direct and then the Co-op announced their closing their doors to new customers and removing products and asking for deposits I began to panic and thought I bet we cannot get one now. My Dad is telling me to save for a deposit but I have credit to pay off and I also have to save for furniture, legal fees, stamp duty so it is going to be impossible for me to save for a deposit aswell this year.
The key though is not to panic because Martin Lewis, The Money Saving Expert has been on GMTV the last few weeks with tips and ideas and said there are ways around it and there are things you can do and if you really want that Mortgage you will get one somewhere, somehow. He also suggested taking out a loan for a deposit if you need to, but he recommends you reduce your credit to a minimum, hence what I am doing at the moment.
The internet and his site is a great place to look for help and advice on these things and to look for products I recommend you try using the money supermarket website. I think this site is very helpful and useful and you can find some great products from people you may of never even thought of. You could also try and independant financial advisor to make a comparison.
If your coming off your fixed rate this year. Again do not panic. The Bank of England is talking about cutting interest rates again this week and if they do although it wont be much, as Tesco says every little helps.
The key points are to keep looking and searching utilising the facilities available to you and not to panic.
If you find that you cannot afford to repay your house at the current rates or the fixed rates that you find, talk to your lenders and get help and advice. The key is not to leave it and panic and let it spiral out of control. I am sure your lenders will be empathetic and understanding and be willing to help.
I suggest maybe selling up and renting for a while and keeping any of your equity in a savings account and using it for a deposit once the market picks up a little again as well.
If I cannot get a mortgage this year, I am going to miss out on the location of my dreams and have to end up renting but the thing to remember is maybe it is not meant to be and if they are designed at first time buyers who cannot get mortgages and they cannot sell them they may have to drop the prices.
Who knows. it is all a waiting game for me at the moment and it has happened at the wrong time, but I am confident if I use all the tools available and Martin Lewis's advice I am certain that I can get what I want in the end and you can too.
Just think straight and clearly and do not panic and sit down with your other half, if it is a joint thing and go through it together.
I hope this helps those who are currently worried about this current situation. It has certainly helped me. Lol.