Mortgage advice/guidence

pjgreg

I have just recently started reading some posts on the forum and was after a bit of advice because I’m not really sure where to start so please bear with me.
Currently I am living in a rented house and have quite alot of debt which has managed to accumulate over time. Between a loan, credit cars, HP and our car we currently owe about 25,000 we have never missed any payments.
Recently my mother-in-law has been ill and lives alone in a bungalow and because of her health we all want to move into a bigger house together. She is willing to pay off all out debts with the money from selling her current house which is mortgage free and then from the remaining money use it for a deposit on the bigger house and leaving some for improving the property. If she gets 100,000 for the house then we pay our debts of we should have a deposit of about for the deposit 60,000. And for a property of about the right size we are looking at the total price being around the 190,000 in the area we wanted.
My problem is I haven't got a clue where to start with this we are first time buyers I earn about 23,000 and my wife 14,000. Does anyone have any ideas because I’m guessing we wouldn't be able to get a mortgage with the amount of debt we currently have but we couldn't clear of the debt until we could sell my mother-in-laws house.....
Any advice or guidance would be much appreciated.

Thrugelmir

What you are suggesting isn't unachievable. Could you share the bungalow initially. Using the money saved to reduce your debt burden?

Bullfighter

Sorry to hear about you MiL.

You could always sell her bungalow and then rent together for a year or so, this would put you in a debt free & no chain situation. Since house prices are trending lower (!) you will probably save a lot of money.

herbiesjp

You can't move until you have the funds for teh deposit, so the bungalow would need to be up for sale and you would need to be looking for suitable properties (any special requirements to to MIL's illness?)

The scenario is do-able as a mortgage of £130k on a property of £190k is under 70%LTV.

Joint income of £37k with all debts cleared will mean some lenders could look at this for you.

I'd suggest getting help from a good whole of market adviser seeing as you are FTBs with the slight twist of the debts and the MIL scenario.

pjgreg

Thanks for the suggestions so far...

Thrugelmir wrote: »

What you are suggesting isn't unachievable. Could you share the bungalow initially. Using the money saved to reduce your debt burden?

Unfortunalty this is really an option because the size of the property.

You could always sell her bungalow and then rent together for a year or so, this would put you in a debt free & no chain situation. Since house prices are trending lower (!) you will probably save a lot of money

We had considered this option as a last resort really so we don’t have to move twice in such a short period of time.

You can't move until you have the funds for teh deposit, so the bungalow would need to be up for sale and you would need to be looking for suitable properties (any special requirements to to MIL's illness?)

The only special requirements are that the house has space for her to have a bedroom and bathroom on the ground floor. And there are plenty of houses in our area that we would be able to achieve this relatively easily.

The scenario is do-able as a mortgage of £130k on a property of £190k is under 70%LTV.

Joint income of £37k with all debts cleared will mean some lenders could look at this for you.

I'd suggest getting help from a good whole of market adviser seeing as you are FTBs with the slight twist of the debts and the MIL scenario.

I’m glad to hear that it sounds do-able in theory I was even sure of that... Got an appointment with a local adviser on Friday so will have to see how it goes.