Getting a mortgage with credit card debt

SarahMc273

My boyfriend and I are hoping to move to a bigger property asap. He currently owns the maisonette we live in. He bought it for £137,000 and we're hoping to sell it for around £200,000.
We want to look for something around £300,000. I earn £25,000 p.a and he is on about 35,000p.a.

My worry is that I have about £8,500 on different credit cards and a car Hire Purchase of £10,000. Is this going to have a negative effect on our application? I was wondering whether I should get a loan to consolidate the credit card debt so I only have one monthly payment?

ANy suggestions woul be gratefully received!!

Thrugelmir

If you can afford a larger mortgage, then you can afford to pay down your debts. Debts may impact your application as you are you looking to borrow a considerable amount of money.

spud211

Depends on the lender - some will look at your total debts and knock that off your income, others will look at affordability - so how much your credit cards cost you per month and then effectively add that to your mortgage monthlies.

In short - yes it does make it more difficult to be accepted but certainly not impossible..and no don't consolidate, that will result in more credit checks, another loan on your file and so on..i'm no expert but that can't be a good thing.

Always best to pay them off before taking out your mortgage if you can, but at the very least have a good plan for when they will be paid off and make certain you are paying more than the minimum each month.