Trying to get a mortgage - queries

kckals

Hi, I was hoping for some advice. I'm about to attempt to buy a property but I'm really nervous about applying for a mortgage. I earn a decent(ish) salary, in a safe profession but I have debt. I am in control of my loan repayments and have been paying them alongside rent for over 4 years. My credit rating is good. I have the deposit but I am really concerned that I will not be able to secure a mortgage. Any advice? I am clueless about this process so any advice would be greatly received!

Thank you

beecher2

Your debts will be taken into consideration when you apply for a mortgage. With no figures regarding income, deposit, LTV etc it is impossible to say how much of an effect they will have. Might make more sense to pay the debts off and start saving a deposit when you're debt free.

jockosjungle

Or let us know your salary, debts, your deposit and how much you want to borrow and we might have an idea whether its an issue

TrickyDicky

Pay the debts off with the deposit money, then you can save more.
Lenders will probably subtract your debts from your savings when they see if you are a worthy candidate anyway.

It makes much more financial sense to pay off debts with savings. It just means you have to wait a bit longer before you can buy. Rent money is NOT wasted money you could be spending on real house. It's paying for your accomodation isnt it?

herbiesjp

Loan payments will be annualised, and then deducted from your income before applying income multiples/affordability calculations.

So if your loan payments were £100pm, and you gross basic salary was £20k, the salary used for income multiples would be £18,800 (12*£100 = £1200 deducted from gross salary)

Overall, it is more than just the loan that affects the multiples offered, as stated above.