Are we likely to get a mortgage?

florida09

Hi

Last year my partner and I went to First Mortgage to get advice on how much we could borrow. We were advised to look at houses 125k or less so that we could avoid paying stamp duty. I have read / heard that this no longer applies as now first time buyers don't have to pay stamp duty until 2012?.

Anyway we have between 15-20k as a deposit and we are looking at houses at £140,000 max but really looking to get a property for around 125/130k I have one loan and my partner only has his car finance which will be paid of by the end of this year. I am hoping to pay my loan off but don't know for sure if i will be able too. We have a combined salary of £36,500.

My credit report on experian looks fine to me, no late payments, no missed payments on anything etc. I just wondered if you think we would actually be able to get a loan or if we would be turned down as I know its difficult to get them these days. I don't want to be getting my hopes up looking around only to be turned down. Like i said i know its best if i can clear my debt and I am going to try and do that soon and my partner doesn't have any debt apart from his car.

Any help would be great

herbiesjp

You should be fine.

However in order to be more certain you would need to state how much the monthly payments are on the loans and car finance. Also do you have any credit card balances? Do you have any children?

Cannon_Fodder

florida09 wrote: »

Last year my partner and I went to First Mortgage to get advice on how much we could borrow.

Anyway we have between 15-20k as a deposit

I am hoping to pay my loan off but don't know for sure if i will be able too.

florida09 wrote: »

Hi
I borrowed £6000 and I have to pay back £8394 over 3 years. Having made two payments I realise that it is a big stretch each month and I am going to end up borrowing more money to live from.

I would like to extend my loan agreement from 3 to 5/6 years so that it lowers the payments each month...

florida09 wrote: »

I took out a loan with Clydesdale Bank last year for £6000...however I am paying back just over £12,000 over 5 years.

Looks like a £6k loan. Approx £200 a month. £233 was "a big stretch".

Pay that off using your deposit cash, avoid the horrendous £6k in interest charges/ppi, then re-save your deposit.

To me, your loan looks like half your deposit anyway - if it isn't, what did it get spent on, and why did you borrow it last summer, when you presumably had most of £15k sitting in the bank somewhere ?

florida09

If i had 15k in the bank then i certainly wouldn't have went and taken a loan which has me paying back a stupid amount of interest. I have only just inherited money and will inherit some more but its unknown yet as to when.

My partner pays £269 a month for his car. My loan payments are £200.

I feel the debt is my problem and I am not wasting my deposit money paying it off. There is no way my partner and I could come up with a deposit like we have now - certainly not for many many years anyway.
I am using the 15k as deposit for a house, and if i inherit more which i will be its just unknown as to when and along with a little bit of savings i have i intend to pay of my loan. I can afford my loan every month since i have sorted my finances out and stopped wasting money away on rubbish so the £200 is no longer a problem but of course better if it's paid off. My loan also covers the cost of my car so I don't really see it as a loan for just anythings it more like my monthly car cost.

Neither of us have any children or credit cards, store cards no other debt apart from the two mentioned.

herbiesjp

A lender would reduce your income by around £5700 to allow for the loans etc.

However, you should still be able to get the mortgage amount you are looking at even with the loans outstanding.