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Should we clear debt before getting a mortgage?
purplesammy
Posts: 3 Newbie
Hiya
I could do with some advice. My partner and I are thinking of purchasing a two bed shared ownership property. We are looking to get a 40% share, we will borrow the deposit off family and pay back monthly.
We have about £9,000 existing debt on 0% cards, we have forecast that we can be debt free in one year. It will take longer to clear the debt if we take out the mortgage.
Are we best to go for the property or is it worth hanging on till we are debt free? This could be the last year we will qualify for shared ownership as we are the top of the maximum income threshold. We would be in a better position to purchase a property at full market value, though we would have to save for a bigger deposit.
Does anyone have any ideas?
I could do with some advice. My partner and I are thinking of purchasing a two bed shared ownership property. We are looking to get a 40% share, we will borrow the deposit off family and pay back monthly.
We have about £9,000 existing debt on 0% cards, we have forecast that we can be debt free in one year. It will take longer to clear the debt if we take out the mortgage.
Are we best to go for the property or is it worth hanging on till we are debt free? This could be the last year we will qualify for shared ownership as we are the top of the maximum income threshold. We would be in a better position to purchase a property at full market value, though we would have to save for a bigger deposit.
Does anyone have any ideas?
0
Comments
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Always clear your debts before getting a mortgage. By the time you've done that then you might not need to go the shared ownership route if property prices reduce (best to avoid shared ownership if you can possibly help it anyway).0
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That is the way I am swaying at the moment. Other half is a little worried though as he is 40 next year and he is worried that if we leave it another couple of years we will srtuggle to get a 25 year mortgage because of his age.0
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Doesn't have to be 25, it could be 24, it could be 23, depends what you can afford...The longer the term the more interest you pay anyhow....0
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I have always wondered why 25 years is seen as the standard term?!?!"Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00 -
I don't know, I just assumed 25 was the standard. My other half is 39 this year and I am 36 this year so that is why we figured on a 25 year mortgage.0
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