Confused First timer

flossyflo

i was hoping for some help please......
my fiancee and i would like to get a mortgage to buy our own home- nothing fancy.

i am earing 12k, and have outgoing of £25 per month to clear credit card of £1500, I have £1500 in saving towards a deposit, would I be best to clear this credit card first? how long must debt be cleared so that it wouldnt be counted in mortgage application?

i also pay £25 for 3 1/2 yrs for sofa, i missed first payment of this 9 months ago due to incorrect bank details.

I am starting my new job next week, do i have to show a certain amount of payslips or permanent employment contract?

I will be recieving benefits of £260 every month due to disability, is this counted in calculation?

my fiancee earns 19k hopefully 21k in the next few months
he has outgoings of £25 per month to pay £1500 credit card, and £150 car repayments.

he previously had a a few credit cards but has not missed any payments in about 2 yrs, and they have been cleared about 1yr ago

he had a mortgage 4yrs ago to buy his parents house, it was resold and he has been mortgage free for 3yrs. does this mean we cant apply for first time mortgages?

we are leaving our rented home in 3wks and moving in with my parents to save for a deposit. my parents are helping us with money towards a deposit too. i think we could get 10k saving for 6 months. is it still possible to get 90% mortgages? otherwise we could be in for a long stay :(

sorry for so many questions but there is so much going round in my head!!!

laurad85

I don't know any answers but i was in the same position a few months ago. Myself and my partner had £3000 debt between us and used the deposit we had saved up to clear all debts. This left us with no deposit but no debt. We felt this would be the best idea considering the climate at the mo. We now have £3000 saved up again but have still got a long way to go-hopefully have it by September. It feels nice to be debt free but we still feel like we have no money as every penny goes into our savings account!

Laura

flossyflo

thanks laura for the encouragement! it seens like such a long rocky road- but i'm sure we'll get there- and i do think the "debt free" bit is important:D

CloudCuckooLand

In view of the mistakes on paying card/sofa, and the plan to save a deposit taking 6 months or more, you might as well pay off your debts/sofa to avoid any interest/future mistakes cluttering up your credit history.

The time you take to save will also allow your new employment to become more secure, plus the OHs potential pay rise to filter through.

All helping with any application, in addition to speeding the saving process.

Try to aim for 15% deposit, the deals are that bit better.

You won't count as FTB for the new stamp duty arrangement, but you will for getting the mortgage.