Advice Please- Mortgage & Loan

moneymadness_3

Hi There

Myself And My Fiance Are Trying To Buy Our 1st Home Together.

We Are Both On Reasonably Good Wages (15k Each), And Have A Few Loans Between Us. Recently Tried To Get A Consolidating Loan For 14k, But Were Turned Down.

Cant Understand This, As Both Credit Ratings Are Good,
(i Have 1 Default For £20.00 Which Has Since Been Paid)
And Repayments Would Have Been Less Than What We Currently Comfortably Pay.

However Our Concern Is Now That We Might Not Be Able To Get A Mortgage, Although We Know We Can Afford It On Our Wages.

The Other Thing Is We Are Getting Married In 2008, What Do We Do First, Clear The Debt (of 14k)or Save For The Wedding.

With Being Turned Down For The Loan We Are Afraid We Might Not Get A Loan In 2years When We Need It For The Wedding, If We Clear The Debt Now !!!

Any Advice Would Be Much Appreciated, As Im Very Confused!!

Thanks

lightspeed

Hi,

I am no expert, but would assume that your situation is not helped by the outstanding loans. The default is also likely to be an issue. There are probably some lenders out there that could offer you a mortgage, but any debts will be deducted accordingly from the the max amount available to you meaning you may not beable to borrow as much as is needed. I would seek the advise of a whole of the market mortgage broker, who should work for free and take their cut from the lender. They will be able to offer professional advice and have access to a wider range of products.

I think you also need to prioritise your goals. Is getting a home so high on your list that you may consider postponing the wedding or having a less expensive one (that doesnt require further loans)? While you have debts of that size i would personally try to clear them ASAP or at least reduce them considerably. I am not sure if the long term solution is to get another loan for your wedding which will limit your options even further.

Hope this helps

moneymadness_3

thanks
the reason we are buying the house, is weve had a really good offer. it currently is a council house, and we are looking like getting it for 40k. so its hard to pass up.

thanks very much for your advice

lightspeed

So hopefully, for that amount, on your current incomes and probably including the debts someone out there will be able to offer you something.

I still think that using the services of a whole of the market broker would be best route to take. I am by no means reccomending this, but it might also be useful to enquire about consolidating your outstanding debts with the mortgage. This would require dicipline, to ensure that you dont take out anymore loans but at the same time would give you the opportunity to save for the wedding and give you a fresh start financially.

moneymadness_3

thats something we hadnt thought about, but thank you so much