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  • FIRST POST
    • joed72
    • By joed72 10th Sep 17, 10:21 PM
    • 16Posts
    • 0Thanks
    joed72
    In process of Selling House and looking at Mortgages but have debts
    • #1
    • 10th Sep 17, 10:21 PM
    In process of Selling House and looking at Mortgages but have debts 10th Sep 17 at 10:21 PM
    We are currently in the process of selling our house for £240k
    Our mortgage is £35k and I have debts of £22k (credit card and loans).

    Debts were caused by home improvements and a gambling addiction. I no longer gamble and my bank account does not show any gambling transactions.

    We're hoping to get a mortgage of £130k

    Our joint salaries are £70k

    Once we accept an offer on our house we'll then look at establishing a mortgage but I'm concerned that I will be rejected due to my debt. (The equity from the house sale will cover my debts easy enough though).

    My credit rating for years was excellent and then due to a number of personal situations, (extremely unwell child, mother with cancer, off work with stress) I went completely nuts and gambled myself into poor credit. I've now managed to climb back into a Good Rating and have not missed any payments and pay back £450 a month from my £2650 monthly income to paying debts off.

    Will the mortgage company look at my debts in a negative manner even though we will have a deposit of around £190k for a £320k house?
Page 1
    • glosoli
    • By glosoli 10th Sep 17, 10:28 PM
    • 673 Posts
    • 386 Thanks
    glosoli
    • #2
    • 10th Sep 17, 10:28 PM
    • #2
    • 10th Sep 17, 10:28 PM
    Relatively speaking the debt is of a low proportion to your salaries, so I don't think that will be an issue to be honest. If you do not wish for these debt repayments to be taken into consideration for affordability purposes however then you will need to approach a lender who can take into consideration that upon the sale of your existing property that these debts will be fully repaid. Some lenders may fully factor in the expenditure regardless.

    In terms of your actual credit rating, putting side the level of debt, was there any adverse credit i.e late / missed payments, defaults, CCJ's, etc?
    • Onwards and upwards
    • By Onwards and upwards 10th Sep 17, 10:28 PM
    • 43 Posts
    • 7 Thanks
    Onwards and upwards
    • #3
    • 10th Sep 17, 10:28 PM
    • #3
    • 10th Sep 17, 10:28 PM
    I think you'll be fine. We have debts of £40k, combined salary of £110k and got mortgage for £358k for a £405k purchase (90% LTV).
    • ACG
    • By ACG 10th Sep 17, 10:32 PM
    • 15,762 Posts
    • 8,058 Thanks
    ACG
    • #4
    • 10th Sep 17, 10:32 PM
    • #4
    • 10th Sep 17, 10:32 PM
    You should be fine with 99% of lenders based on what you have said.
    A little bit of research and you should be fine or alternatively speak to a broker.

    I would not worry too much however.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • joed72
    • By joed72 10th Sep 17, 10:46 PM
    • 16 Posts
    • 0 Thanks
    joed72
    • #5
    • 10th Sep 17, 10:46 PM
    • #5
    • 10th Sep 17, 10:46 PM
    That's great news, and thanks for your fast responses!

    There are no missed payments, defaults, CCJ's, I'm just look forward to moving on with our lives now, getting the debt out of the way and being able to save again!
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