Ftb with debt!!

stu_2008

Just wondered if someone who knows their stuff could help me out.

i am a first time buyer with debt. when i say debt i dont mean CCJ's or anything like that, basically just over 16k of Credit Card debt with minimum repayments of around £300 a month.

what i want to know, as this will be a joint application, how would my debt affect our first time mortgage?

we both take home just over 2k between us a month, and desperate to get our own place.

HELP!

opinions4u

1) What sort of purchase price do you have in mind?

2) How much deposit do you have?

3) What are your gross salaries?

4) What outstanding commitments (loans / credit cards / overdrafts etc) do you have?

5) Are all these fully up to date and within agreed limits?

6) Have they always been well conducted?

Your credit card commitment is just one part of underwriting a mortgage. Without a fuller picture nobody can help you with any accuracy.

stu_2008

) What sort of purchase price do you have in mind?

100k MAX

2) How much deposit do you have?

NO DEPOSIT AS OF YET, BUT WE COULD SAVE ONE!

3) What are your gross salaries?

GROSS SALARIES(BEFORE TAX) 18500, AND 17000

4) What outstanding commitments (loans / credit cards / overdrafts etc) do you have?

MY ONLY COMMITMENT IS £300 A MONTH CC's

5) Are all these fully up to date and within agreed limits?

NOT SURE WHAT U MEAN, BUT NEVER MISSED A PAYMENT FOR ABOUT 4 YEARS, ALL PAID ON TIME ETC ETC ETC

6) Have they always been well conducted?

NOT SURE WHAT U MEAN

JonnyBravo

Sorry to deliver bad news but you're not going to get anywhere near £100k.

Pay off your debts and save a deposit. You need a deposit, without one you get nothing.

stu_2008

i dont want to get anywhere near 100k! it was a maximum figure we would take if offered, and according to Lloyds TSB against our income and my monthky repayments, theyd offer us 130k!!!

but only looking around 70-80k but i wanted to know how my £300 a month repayments on 16k of debt wud affect a mortgage

JonnyBravo

I'm afraid it will affect your mortgage.

You are unlikely to get any mortgage with your debt and with no deposit.(Your existing debt is nearly as large as your yearly salary!)

Let_Us_See

Just ignoring the fact you have no deposit, the answer you are requesting is what affect your existing credit card commitment will have on any mortgage borrowing?

You mention gross incomes of £18,500 and £17,000 - let us assume your income is £18,500. Your existing credit card commitment of £300 per month is the equivalent of £3600 per annum, and this would reduce your income for mortgage purposes to £14,900. Joint income would then be £31,900. If you had an acceptable deposit then most lender's affordability calculator would let you borrow £100k or more.

Trollfever

according to Lloyds TSB against our income and my monthky repayments, theyd offer us 130k!!!

As a shareholder in the Lloyds Banking Group, I hope that they are telling you porkies.


.

poppy10_2

Trollfever wrote: »

As a shareholder in the Lloyds Banking Group, I hope that they are telling you porkies.
.

Me too :eek:

_Andy_

Putting aside the lack of deposit, do you really want to be entering into a £100k+ mortgage debt when you still owe £16k on cards?
You mention above you can save for a deposit - this being the case why not spend a year (or however long) shifting the huge amount of CC debt you have?