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Advice on Appling for a mortgage
wilkinho
Posts: 26 Forumite
Hi there,
im am looking to buy a house quite soon but i have a bit of question atm. I have finance on my car at the moment which is at 0% and am stoozing atm on some credit cards (also 0%). But I have been told by a friend that the finance on my car will count against me in regards getting a mortgage. The Stoozed credit cards are easily payable and therefore i don't really class them as a problem. But once those have been paid off I have £3,000 left and have £5,400 left on my car. But I will be living off a budget of £350. I also have two great accounts which are locked to good rates for a year. My question is do I:
a) pay off my car with what I have left in my savings and reduce all my as much as can and still put all my spare cash from after paying my bills and leaving all my budget and still stooze of my cards
b) wait til my savings are more than the finance and pay it all off and not owe anything at all (even though I'm not paying interest on anything)
c) just keep saving and use the good rates that I have until they run out!!
I should also say i'm looking to buy towards the end of the year!!
Please can you advise!!!
im am looking to buy a house quite soon but i have a bit of question atm. I have finance on my car at the moment which is at 0% and am stoozing atm on some credit cards (also 0%). But I have been told by a friend that the finance on my car will count against me in regards getting a mortgage. The Stoozed credit cards are easily payable and therefore i don't really class them as a problem. But once those have been paid off I have £3,000 left and have £5,400 left on my car. But I will be living off a budget of £350. I also have two great accounts which are locked to good rates for a year. My question is do I:
a) pay off my car with what I have left in my savings and reduce all my as much as can and still put all my spare cash from after paying my bills and leaving all my budget and still stooze of my cards
b) wait til my savings are more than the finance and pay it all off and not owe anything at all (even though I'm not paying interest on anything)
c) just keep saving and use the good rates that I have until they run out!!
I should also say i'm looking to buy towards the end of the year!!
Please can you advise!!!
What should I do 2 votes
a)
0%
0 votes
b)
50%
1 vote
c)
50%
1 vote
0
Comments
-
You should look at what interest rates you're getting on your savings vs what interest you're paying on your cards.
Pay off the cards first, then the car (as it's 0%).
Don't bother even thinking about buying a house until you have paid off ALL your debts (car and credit cards), and have saved up a 10% deposit, plus enough to pay for solicitor, estate agent, moving costs etc...Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
Doesn't look like you'll be able to buy anytime soon. You have a net debt of -£2,400 (ignoring the CCs). At a monthly budget of £350 a month, even if you put every penny towards saving, you would still end up with net £1,800 for a deposit by the end of the year. That's not going to get you a mortgage even if credit conditions relax.poppy100
-
and have saved up a 10% deposit, plus enough to pay for solicitor, estate agent, moving costs etc...
And I think you'd be EXTREMELY lucky to get by with a 10% deposit at the moment - the best we have found is 15% and many lenders seem to be looking for 20% upwards...it's all a bit depressing really!0
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