First Time Buyer Help!

regular_guy

Hi,
Firstly please accept my apologies if this is the wrong thread I'm posting to!!!

Me and my partner are desperate to get ourselves onto the property ladder. We live in Aberdeen (Scotland) I'm 25 and my partner is 19. We both work full time and our combined income is £26992.
The main problem is a credit card debt that I'm trying to pay off, this is a Clydesdale Bank Mastercard with a balance of £3319.09. I am in a position to pay this off now however I am reluctant to use all the money that we've saved to do this.
I am also re-paying an existing bank loan which has a balance of £6000 through Egg.

My questions are:

1) Am I better to pay off this debt and go for a 100% mortgage??? (Something I've considered however I'm told could be difficult as my partner is under 21)

2) Should I take out a loan to pay the credit card and then use the money saved to buy a property????

Any help on or advise would be much appreciated.

Thanks

cattie

I would imagine that the interest on the debts are more than you receive on your savings, so for that reason it would make more sense to clear the debts & then put all spare money into saving a decent deposit.

You should never consider buying a property without having a bit of money saved as you never know what is around the corner. If you can't keep up the payments for any reason, such as sickness or unemployment, you risk having the house repossessed.

I can understand you desperately wanting your own place, but you really would be better off to wait & save to get yourself in a better position financially.