FTB mortgages plus existing debts

Eva86

Hey all,

I'm sure you've heard this all before but as this is my first time posting and I'm not too sure about things please bare with me!

My boyfriend and I have been wanting to buy a house for the past few years, however we've been held back by his debts. This was not such a problem when every Tom, !!!!!! and Harry were being accepted for 100% mortgages but now we've had to save and have just about got a 10% deposit for a decent enough flat.

We are both on decent salaries, having a joint income of approximately £55,000 (excluding boyfriends bonus'). The debt is mostly in his name and comes to a whopping total of around £50k (this has been reduced from £70k in the past 3 years).

I am in need of some advice as to how likely it is that we can get a relatively decent mortgage, on paper we can make the mortgage payments as well as the debt repayments each month, however I am aware that the lenders may not see it like that. Neither of us have any adverse credit history, my partner has never missed a payment- but I'm worried the debt will make us seem like risky buyers.

Our joint monthly take home pay is approximately £3,600 and the debt repayments are around £800 per month (2 loans, 1 credit card). This technically leaves us with £2,800 per month for mortgage, bills, etc. So we can afford up to around £1k per month for mortgage payments. Any thoughts or similar experiences with getting a mortgage whilst in this position?

Also, are there any other options for us? Do any lenders offer a loan as part of the mortgage? Perhaps one that would be secured on the house and therefore have cheaper monthly repayments?

I'm conscious that putting money towards debts is a better option than getting into even more debt with a mortgage, but they will all be cleared in 4-5 years time and we are really, really eager to start our lives together having been after a house and mortgage for so long!

Any help would be much appreciated.

Thanks

suisidevw

You've paid £20k off in 3 yeras and all debt will be cleared in 4-5 years time? How, are you upping your payments etc?
How much deposit have you got?
Don't fancy using that to reduce debt even more?
What price ranges are you looking in for flats?
Renting now at what cost?
PS, How did he get into £50k of debt?!

Eva86

As two of the debts are loans they are coming to an end in about 4-5 years. Also, as the debts are, funnily enough, affordable we are able to pay a little more than the minimum payment each month (for the credit card). Also, boyfriends bonus' have been going towards debts which has helped. So there is fortunately a light at the end of the tunnel, but it's a long tunnel!

We have 10% for a decent London flat of about 160k, like I said, I know that reducing the debt is the best option, but was wanting to know whether we could get a mortgage in our current positions. Price range literally as cheap as possible, any work needed is even better, but from what I can see of the market the kind of place we're after is about £170-180k.

Fortunately neither of us pay rent at the moment as we live with our parents (separately, of course) This is how I've been able to save for a deposit and he's been able to eat away at the debts.

Unfortunately as with most people, the debt came through a lot of bad choices, and also, he has been supporting his family and sister through uni. Although I would admit most the debt was due to silly choices- however I wasn't with him during these times!!

Thanks for replying