I owe 70k worth of unsecured debt can i get a mortgage

pmj9bro

I wonder if anyone can help..

I earn a good salary of over 56k per year.I owe 50k on credit cards with 20k on p/loans. I am moving house to help pay of some of the debt.

I will have £53k equity when i sell my house, I am looking to deposit £20k on a £190k mortgage and pay off £33k credit card debt this will leave £38k unsecured, heres my problem, beacuse of this debt it appears i cant get a mortgage. Can anyone advise who would give me mortgage, I tried the post office and they rejected me, they didnt give reason but i guess its because of the debt. are ther any mortgage providers who would be sympathetic. I had a tenatative discussion with my bank first direct whom i have been with for years, they said it would be unlikely they would be able to help. I apprecate i might have to pay a higher rate. I should add that i have an excellent credit score

Joe_Bloggs

I don.t know why but I was drawn to the thoughts of the fictional character Wilkins Micawber. He said:-

Welcome poverty!..Welcome misery, welcome houselessness, welcome hunger, rags, tempest, and beggary! Mutual confidence will sustain us to the end!

It is your money that you are throwing away to your creditors.

Some forum members get a light bulb moment when they realise that certain debts are a blight on their future plans. Financial problems can be alleviated with disciplined budgeting

J_B.

opinions4u

You have debts that are unsecured and double your take home pay.

That should scare the hell out of any potential mortgage lender as it shows that you have been living beyond your means - probably for an extended period of time. Your "excellent credit score" has allowed you to continue down a path of excessive borrowing.

You have proposed taking out a 90% mortgage. I think it's far more likely that a potential mortgage lender would want to see a 25% deposit in these circumstances because the first view of any underwriter should be "what's the likelihood of this applicant racking up the unsecured debts again after the mortgage completes?". The answer, statistically, is extremely high - and that increases the risk of losses/arrears to the mortgage lender.

I suspect the best course of action is to sell up, reduce the debt significantly, rent and work on clearing the rest of the debt and building up a decent deposit in savings for a house purchase in future.

Excellent credit score or not, your current borrowing habits are unsustainable and you need to accept that this is a problem and deal with it big time. Good luck!

(I do wonder whether posts like this should have a "Trollometer" added to them so that readers can indicate the likelihood of such posts being, perhaps, not genuine).

getmore4less

Rent and start again with a budget.

beecher2

Yeah, rent and go to the Debt Free Wannabee forums for help in how to get rid of your debt and build up a deposit. With your income it shouldn't take too long if you really put your mind to it for a year or two.

dorisday

You really need to go to the DFW board and post up a SOA then we can see where if any you can make cuts to pay off these debts. At least you still have your home and a decent salary and Im sure we can help you.

dorisday

Also forgot to add renting could cost you more than your mortgage. My mortgage is £200 a month but to rent my home would cost me £600 a month.

mitchaa

dorisday wrote: »

Also forgot to add renting could cost you more than your mortgage. My mortgage is £200 a month but to rent my home would cost me £600 a month.

Not with the figures he is talking about.

It always amazes me that people can rack up so much debt. Why let it get to £70k before tackling it? Why was the trigger point not set at £20k or £25k, or even £50k?

I know that doesn't help much but i just don't understand it.

Anyway, like everyone else has said, best bet is to sell the home and use every penny for debt repayment. Don't start thinking about buying a house until youre at zero debt.

stebiz

I would sell up and bank the cash with family. Then I'd do a Harry Hill to the creditors and say =Fight=

Obviously this would affect your credit record for a few years. But I'd keep my head down in Rented Accommodation and watch the fun pursue. In the meantime learn to live within your means!

Most of it is probably unenforceable anyway.

=:j=

ps This is from a guy whose light bulb moment was 50k, who also had 'properties' with a fair bit of collateral, and who had all of it unenforceable.
Only difference was that I didn't move house!

Oh dear I fear a Stebiz bashing coming on from the morals brigade!

Antispam

IN your dreams

caveatvenditor

I'm afraid you are not going to have much luck.

The world is changing back to normality with regards to borrowing - and money will only be available to low risk borrowers - people who are likely to actually to return the money. There is little money around.

Good luck in your quest.