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No debts before mortgage?

Will banks really not lend to you if you still have debts on credit cards? For example £5,000. I am looking to buy my first flat. It's a bargain at £132,500 near central London and I really don't want to miss this opportunity. I have worked out that I could afford to pay off a mortage at a fixed rate of 8% (tops) for 2 years. Whilst clearning the debts in that time.

Comments

  • jay78 wrote:
    Will banks really not lend to you if you still have debts on credit cards? For example £5,000. I am looking to buy my first flat. It's a bargain at £132,500 near central London and I really don't want to miss this opportunity. I have worked out that I could afford to pay off a mortage at a fixed rate of 8% (tops) for 2 years. Whilst clearning the debts in that time.

    Of course they will, they will just want to ensure that you can service the mortgage as well as the credit card debts.

    Consult a professional broker to help you through this maze!

    SS
    I am a fee charging WoM Mortgage broker.
    I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.
    Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:
  • You can quickly check online whether a typical mortgage lender would accept you / how much they would lend based on your debts etc.

    Try this one from Nationwide which looks at affordability - just type in details of your salary, how much you owe on credit cards etc and it will give you a better idea of how much you can borrow:

    https://olb2.nationet.com/(m4qrtejpuww3z445vxqf2i45)/applications/mpiui/start.aspx

    The flat does sound like a bargain for anywhere near central london! Is it a 1 bed?
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