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Pay off debts or save for deposit
liz09
Posts: 89 Forumite
Hi,
Any help appreciated. Me and my boyfriend want to buy a house in Oxford and to do this we'd be looking at a property in the region of 200 - 250k. We have no savings. I have 8k of debt and boyf has approx 15k.
We're paying this off quickly and if we weren't buying a house would expect to be debt free in less than 2 years. However Oxford property moves fast and by then our wages probably wouldn't guarantee a mortgage on the house we want.
Therefore we want to buy a property next summer (ish!)
Do we:
A - pay off as much debt as we can so we can pay more repayment / interest only mortgage (accepting the fact we will need a 100% mortgage as we have no deposit)
B - move the debt to cheap repayments (i.e. 120 month loans, credit cards with low repayments) and thus save the repayments to build a 5% deposit?
Second issue if we go for A can we even get a 100% interest only mortgage - do they exist. I'm bonused heavily (quarterly) so an interest only makes sense.
Thanks in advance
Liz
Any help appreciated. Me and my boyfriend want to buy a house in Oxford and to do this we'd be looking at a property in the region of 200 - 250k. We have no savings. I have 8k of debt and boyf has approx 15k.
We're paying this off quickly and if we weren't buying a house would expect to be debt free in less than 2 years. However Oxford property moves fast and by then our wages probably wouldn't guarantee a mortgage on the house we want.
Therefore we want to buy a property next summer (ish!)
Do we:
A - pay off as much debt as we can so we can pay more repayment / interest only mortgage (accepting the fact we will need a 100% mortgage as we have no deposit)
B - move the debt to cheap repayments (i.e. 120 month loans, credit cards with low repayments) and thus save the repayments to build a 5% deposit?
Second issue if we go for A can we even get a 100% interest only mortgage - do they exist. I'm bonused heavily (quarterly) so an interest only makes sense.
Thanks in advance
Liz
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