Before I get a mortgage?

madge7

Hi
I want some advice if poss, I want (actually I need) to buy a place in the next year. I will be earning approx 30k in six months time, I have about 15k saved. However I have about 8k in debts, (car loan and credit cards).

I realistically dont think I will be able to pay this off before I need to move out, I really need to buy somewhere by next xmas. Can I add this extra debt onto the mortgage? I will be able to pay some off, but I just dont think paying it all off before I have to buy a place will be an option.

Does anyone have any advice on what would be best to do?
Many thanks

herbiesjp

What property prices would you be looking at?

What is your income?

madge7

My income now is 22k but when I am buying it will be more like 30k. Property prices I am looking at are around 100-110k
Thank you!

herbiesjp

WHat you should look to do is have at least a 10% deposit

If you have any other surplus savings, don't forget other expenses invloved in the house buying process i.e. solictor fees, valuations etc

If you have any surplus, reduce the amount on the debt that has the highest interest rate first.

You could find lenders willing to agree a mortgage on that basis - it all depends on what those cards/loans are costing you on an individual monthly basis

g_attrill

I think should be ok with just the car loan, however your salary minus the payments will be used to calculate your maximum borrowing. They might insist that the credit cards are paid off before the mortgage is taken, so work on paying them off ASAP.