Will debt stop us getting a mortgage?

CYBERCIDERSAVER

We are considering taking the plunge into the housing market but I am worried our debt will stop us getting anywhere.

I willl (hopefully) get promoted at work soon and my income will be 27000 pa
My wife works p/t and earns 7500 p/a

we need a 100% mortgage as have no savings

Unfortunately our debt stands at £5600 on credit cards and we are half way through paying a £5000, 4 year loan at £150 per month.

will the debt be too much to get a mrtgage? A house will likely cost £110 000 (we are determined to reduce our debt to nil over the next 2 years)

I am saving through a SIP an Sharesave scheme at work and that is likely to give us a lump sum of about £10000 payable in about 3 and a half years.

Someone suggested Interest only until that matures and then switch to repayment (when other debt is cleared) Is that a good idea?

I want to speak to a IFA or someone who can give us advice on the best way forward but feel as if we will be wasting their time if they cannot help us. Also I have no idea on who is best to advise us IFA, mortgage broker? I'm just totally confused

MortgageMamma

Mortgage broker would be best to advise you as they specialise purely in mortgage but I'm not sayign an IFA wouldn't do as good a job.

Rather than the amounts in thousands of your debts could you put how much you pay monthly and how long you have to go with each?

Also details of any late payments, ccj's defaults and bancruptcies past or present, if any.

thanks

MortgageMamma

CYBERCIDERSAVER

Paying 300 a month on our credit cards

CYBERCIDERSAVER

Seems like an eternity to pay off cc's loan has two years left

herbiesjp

You probab;y can get a mortgage for those figures

However whether it is the right thing for you in terms of affordability is another matter - close analysis of your finances would be in order before taking the plunge with any mortgage but especially on a 100% scenario with outstanding commitments

CYBERCIDERSAVER

Thanks for the good advice. At the moment we are paying rediculously low rent. (£375 for a two bedroom house. the norm is £500 in our area) I think I'm gonna try and double what I pay on the credit cards to get rid of them if I do get my promotion. Then when they are gone go speak to someone.
Thanks again.