first time buyer - help

dragon2121 · 29 August 2008 at 1:50PM

Hi,

Me and my partner are looking to buy our first property. However, like many people our age we have zero savings a signifiant debt. Ideally we would have liked to roll the debt into the mortgage having a one off debt over 25 years. But I know that is not possible, especially in the current market.

Our situation is this:

Total Gross earnings (annual) - £80k
Total debt outstanding - £45k
Monthly net income - £3900
Monthly debt costs - £1600.

Is there anyway of getting on the housing ladder at the moment? I know traditional lenders will not offer 100% mortgages, but what about some of these first time buyer new build deals where they will pay your deposit. Could we then get a secured loan to consolidate are debts? Or is it a case of keep paying of debts over next 4-5 years and then look to buy?

beecher · 29 August 2008 at 2:03PM

It is definitely a case of paying the debts, saving a deposit and then looking to buy - it'd be madness (and impossible!) to get on the property ladder with that sort of debt hanging over you. If you haven't yet done so, go on the Debt Free forum, post your SOA, and see how to get the debt gone as quickly as possible. You've still got a substantial income and should be able to pay off more off the debt than you are at present.

wymondham · 29 August 2008 at 5:21PM

There is no easy way here .. you need to get rid of the debt before you think about buying.. After X years the situation will probably be better to buy anyway.. Good luck!