Mortgage help on Shared Ownership property.

kells1232002

I forgot to say my credit score is 878.

So do people think I should use the £1000 to clear my credit card and keep the overdraft and give the mortgage application a go?????

tek-monkey

Which has the highest APR? I find an overdraft easier to accidentaly run up again, whereas a credit card is a concious decision to put it on credit. You can easily misjudge your current account and end up worse off than expected but you never accidentally use the wrong card. Or at least I don't!

robin_banks

£300 plus mortgage seems fine on a £1500 pcm take home if you didn't have the car loan and other debts, you are paying at least £400 per month in clearing debts.

Tbh I doubt you could afford this property that may not be the answer you want to hear.

FTR I think shared ownership isn't a very good scheme anyway.

kells1232002

My credit card has the highest APR.

I am just wondering from an underwriters point of view, what would like better, £1000 on my credit card but £1000 available on a £2000 overdraft or no credit card but a £2000 overdraft which gets maxed every month?

kells1232002

And better is probably the wrong one...

AMILLIONDOLLARS

robin_banks wrote: »

£300 plus mortgage seems fine on a £1500 pcm take home if you didn't have the car loan and other debts, you are paying at least £400 per month in clearing debts.

Tbh I doubt you could afford this property that may not be the answer you want to hear.

FTR I think shared ownership isn't a very good scheme anyway.

She maybe paying £300 on the mortgage, but dont forget she will have to pay rent on the share she is not buying, plus service charges, council taxes, plus other bills.. so that £400 will be considerably reduced.

AMD

kells1232002

The mortgage, rent etc total £496. A friend will be living in the second room and has agreed to pay £350 a month towards billls and rent.

AMILLIONDOLLARS

Thinking from an underwriters point of view... what other debts have you got, why you are maxing out your overdraft of £2000k a month (especially on a salary of £1500k), are you paying rent at the moment? what are your outgoings? and how can you reduce them to be able to afford this mortgage?

Don't forget you owe more than you earn in a month by £500, before you start paying your bills.

AMD

kells1232002

I have my overdraft (£2000) and credit card (£1000) as mentioned and my car loan of £359 a month. That is all.

I went travelling at the end of last year for three months and while I was away I upped my limit on my overdraft and have not reduced it since then.

I live at home with my parents and pay £160 a month in rent.

kells1232002

So realistly I could pay off my credit card with the £1000 comnig my way and clear my overdraft by December/January time but at which point I am pretty sure the properties I have been looking at will have gone.