Mortgage for First Time Buyer. Help Please!

NicolaH_2

Hi. I wondered if you could help. I'm looking to buy a place of my own but could do with a bit of advice before I approach for some mortgage advice.

I currently have debts which are approx £8,000 which are on 0% credit card, paying a lump sum amount off each month.

From this month onwards I will be taking home £1,400 approx (currently £1,210). Been in my job for 8 years.

I am looking to put around £7,000 deposit down on a property approx £91,000.

Will be looking to apply for a mortgage for £84,000.

Will my debts go against me, and would the mortgage people be willing to lend me the money? If so, how would my debts work against me when applying and what would be the best fixed rate mortgage to go for?

Any help would really be appreciated.

Thanks...

herbiesjp

I'm guessing you will be close to £25k gross then from this month? Is that correct?

Lenders will indeed deduct a certain amount to cover any existing liabilities - a 5% cover for credit cards is about average.

Taking this into account you should still find lenders willing to agree £84k for you.

You are borrowing just over 92% - at this level a lot of lenders will charge a fee called a Higehr Lending Charge which can be paid up front or added to the loan - this amount can vary from around £1,100 to £1,400

Some lenders will not charge this fee, however the rates will be slightly higher. You would need to number crucnh to work out which schemes would be better for you.

HTH

NicolaH_2

Thanks for your prompt reply.

Yes I'll be earning approx £24,600 from this month onwards.

What does the 5% for credit liabilities mean, how does that work? How is it worked out in relation to my debts?

Sorry to be thick, just trying to understand everything before I approach a mortgage lender.

Thanks..