Mortgage help on Shared Ownership property.

AMILLIONDOLLARS

You have a £2000 overdraft, are you using all of it? if not how much is being used? After you have paid your rent and car loan you should have £981 sitting in the bank(from salary of £1500), really puzzled why you are paying the minimum amount on your credit card with a balance of £1000k. You will be asked these questions at your interview.

What happens to the £981 for the remainder of the month???

AMD

robin_banks

kells1232002 wrote: »

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.

Have you checked you can rent a room out ?. Seems pernickity I know but many RSL's do not allow this.

kells1232002

Because I have only just discovered this scheme so although I have been saving for a deposit. I havent been conecntraing on clearing my debt.

I am using all of my overdraft every month.

I was going to the interview with the intention on Thursday of telling them the credit card will be cleared by October, which was my original plan, but not sure whether to clear my credit card or some of my overdraft now.

kells1232002

Yes you can rent a room. I just had to name the person living with me.

robin_banks

AMILLIONDOLLARS wrote: »

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

300 Rent and Service charge plus mortgage, sorry I didn't amek myself clear.

I chekced the scheme out 219 rent, 81 service charge. Council Tax and ground rent will also apply.

poppysarah

Do you feel comfortable adding more debt to your debts?

Do you have or plan to have children in the next 5-15 years?


Get firefox. get property bee and go and look at rightmove. See what wya house prices are coming down in your area.

AMILLIONDOLLARS

kells1232002 wrote: »

Because I have only just discovered this scheme so although I have been saving for a deposit. I havent been conecntraing on clearing my debt.

You need to clear as much of the debt as you can. It normally takes between three-four months to get to exchange of contracts, would you be able to make this time frame for a deposit? Don't forget you have to pay your legal fees, plus rent in advance on completion. Have you allowed for this.

AMD

robin_banks

I think you'd need £2000 to cover the costs of buying.

kells1232002

I have £8000 for the deposit, legal fees and survey which should cover it.

If the contracts and paperwork take a while to sort, then I can clear my overdraft my Dec/Jan time. But in the mean time, if I get accepted on the scheme, I will have to apply for the mortgage and they will see that I have the overdraft, even if I am going to pay it off.

AMILLIONDOLLARS

where is your deposit held? If it is held with the bank you are hoping to apply for a mortgage, they may look at your application favouably. You may be asked to give an undertaking that the overdraft will be cleared by the time of exchange. On that basis I'd clear the credit card and close the account, then target the overdraft straight away.

Whatever happens they will be looking at what you are doing/have done with your overdraft, the fact that you have savings may go in your favour.

AMD