FTB Advice Please

CJ2512

Hi,

This is my first thread and all of the information posted has been a great help, thanks!
My boyfriend and i are hoping to buy a house this year, we are aiming for September and by then, we are hoping that we would of paid most of our debts, i have worked out that i will only have my loan to pay off which by then will be approx £8500.00. The question i have is at the beginning of the year, we saw an IFA and he said that by us having the loan will drastically effect the chances of us getting a mortage (he said that at the time, we could have a mortgage up to £58K) which as you can imagine is really disheartening, i am in full time employment earning £15K per year and my boyfriend is self employed earning about £22K per year. We are working really hard to get things paid off before September; will the loan be a problem?

Any advice or information will be greatly appreciated!:A

herbiesjp

The loan may be a problem.

What property values are you looking at ?
What deposit do you have?
How much does the loan cost you each month?

CJ2512

Hi,

My loan repayments are £214.00 per month, we don't yet have a deposit because we are trying to pay off other debts first, we are looking up to £110K (we don't mind putting work in). I was considering in looking at a super balance transfer but i am also aware of watching my credit rating.:A

F_T_Buyer

Sorry to be harsh... but...

Why the hell are you even considering buying a property when you don't have a deposit?

Go save a £10k deposit, pay off all you debts, then come back and ask what mortgage will be best.

homer_j_3

how long has your boyfriend been self employed? Does he have accounts?

CJ2512

Hi

We are hoping to have a deposit by the time we look for a mortage but realistically i will take us forever to save £10K and the area we live in - the house prices are so unrealistic its hard. My boyfriend has been self employed for 5 years and he does have a record of his accounts.

We are trying to pay our debts, we have estimated to have paid off 8K by the beginning of september - not bad i think!

Thanks again for your advice

homer_j_3

F_T_Buyer wrote:

Sorry to be harsh... but...

Why the hell are you even considering buying a property when you don't have a deposit?

Go save a £10k deposit, pay off all you debts, then come back and ask what mortgage will be best.

There are many reasons....

Because they might want to start a home together that in 25 years they will own and not their landlord?

Because rent may be more expensive than the mortgage payment?

Because they are fed up with moving frequently?

Because they are fed up of not being able to make their rental property how they want to?

Im sorry to be harsh too but I think there are valid reasons for wanting to get on the property ladder and in todays world they may not be able to afford a property when they have finally saved the 10k. Yes they may be in a better position with a deposit and house prices may be more affordable but it may not be a risk the OP wants to take and thus has asked the question.

To the OP, all I would say to you is ensure that you go on repayment and do not financially stretch yourself. You will have to understand that the interest rates you may be offered for a 100% mortgage may not be as competetive as one that you could get with a 5% deposit.

You really need to get yourself to a point where you have paid off as many debts as possible as this will only add to the financial strain. I would suggest getting your head down, working as much overtime as possible to get your debts repaid and then visit the situation again in say August and see how far off your target you are or if exceeded then the reality of getting it paid in full before you start a mortgage commitment.

CJ2512

Thank you so much, i do think it is best to re evaluate our situation in a couple of months or so and hopefully we will be in a better situation!

Thank you !!!!!!!!

Joe_Bloggs

@CJ512
It is a pity I can't thank homer_J with a button for very sensible advice.
Why not post on the debt-free wannabe board. You can gain tips and inspiration and also inspire others with your decreasing debt totals. It must be very frustrating to be in this situation but you will sort it out. Have you checked your own credit files for mis-leading information. This is what a lender will read about you, possibly at a very late stage so there is plenty of time to sort out mistakes and avoid them now. You can get a free 30 day Online trial with Experian and Equifax see here. A statutory paper report will cost £2 with either.

nmiah786

:j :rotfl: :j :j :j :j :j :j :j :rotfl:

:T :T :T :T :T :T :T :T :T :T

Homer, I love that!:T

CJ2512

All advice greatfully received, i think i may post on the debt free board!!!!