On My own again

FallenAngel78

Hello everyone,

I would like a little advice if thats ok. I have just been through I divorce and to cut a long story short I now has £7k from the sale of the marital home. I owe 2.5k on a credit card, interest free for 18 months. I owe 2.5k to a family member (I had to buy a car) and have a small overdraft of £500.

At present I live with my parents (the ex forced me to move out then eloped with his bit of fluff). Anyway I am looking to get a sole mortgage. The properties I have been considering are around 45-50k and I can get a mtg for £45. Would I be better to put the whole 7k towards the mtg or pay off my card or family first ? I pay £100 a month towards my card and £150 a month towards my family loan. Any advice is greatly appreciated

Kind Regards x

Trying_to_be_good

Hi FallenAngel

If you want to get back on the property ladder you'll need a deposit (at least 10% of the purchase price) plus money for legal costs etc. That will take most, if not all, of the £7k you have now, so you'd need to pay off your other loans in slower time. These loans may well be taken into account in calculating how much you can borrow.

It might be worth waiting a while, staying with your parents, until you've saved a bit more/lived a bit more without a mortgage millstone around your neck?

Hope that helps.

FallenAngel78

Thank You, had not even thought about the legal costs . Think I better stay put for now and save up a bigger deposit better not to jump in blind and try to wing it. Thanks again x

Jewel_2

Hi Fallen

I remember going to my mortgage advisor after I divorced. At the time, my ex earned a v high income (and I mean high), and I was a contract lecturer doing adhoc hours, so that I could look after my little one and be flexible while my ex concentrated on his way up the ladder.

I remember laughing hysterically. I was offered a mortgage of £17,000, as the hours I worked were irratic, and the maintenance my daughter received from my ex wasn't a court order. Meanwhile, I estimated that my ex would have been offered a mortgage of about £500,000.

Eventually I met someone else, so I'm OK, and really that's the only reason I can afford a house.

Not that any of this helps you, but if you can sit tight for a while, save a bit, and concentrate on perhaps building a career which means you can earn more, then maybe that's the answer?

Take care xx