Mortgage and credit card debts

spend-a-lot83

Hi all,

New to this, so bear with me!

My partner and I are looking to sell our house and buy another, equity in the house will be approx £120k and the house we are looking at getting is £350k. My partner doesn't have any outstanding debts but I have credit card debts of about £6k and a student loan for about £5.5k.
Combined household income of approx £70k. (my partner earns the majority)
Will my debts affect us getting a mortgage?

Thanks for you help!

CloudCuckooLand

Maybe. They won't help.

If you want to use a pickier lender, with the best deals, the answer changes to a definite 'yes'.

whysitallsocomplicated

Hi
just had my mortgage offer through from RBS. we have CC debt and loans. The way they calculated affordability was to take into account the monthly loan repayment value and 5% of the outstanding debt on the CC's to then establish disposable income.

Conrad

Who knows - try some affordability calcs online.

Thrugelmir

Clear the credit card debt before moving house.

spud211

Depends on the lender and your income but should not be a problem, all comes down to your credit rating and how the lender calculates affordability.

Some will take monthly repayments into account, some will take outstanding balance, some a % of this...it varies.

I have got a mortgage offer with santandar and I have about £4k of credit card debt left - though this will be £3k by next month when I actually start paying the mortgage. I was actually approved a few months ago when I had £6k of debt, so it clearly wasn't a problem for them. I also have student debt of £8k. My income is around £30k and my mortgage is £97k.

I think that generally if you can afford the mortgage+bills then it's not a problem..but depends on your lender

GMS

Try a couple of lender websites and use the affordability calculator.

Why not repay your debts from the sale proceeds rather than carry them over?

Try the affordability calculators with and without the debts. The difference may be shocking.

herbiesjp

The debts will affect the amount you can borrow.

Whether they will be enough to stop you getting a mortgage, depends on the chosen lender and their criteria.

The only way you will find outs is by either approaching your chosen lender directly, or going via a broker.

Make sure no credit checks are run against you as that could harm your application.