Mortgage Advice

alter_ego_05

Hi,

Im looking for my very first mortgage, i have looked at a number of banks etc however im confused by the Mortgage Calculators for how much i would be able to borrow

Some companies ask for existing debts and other dont ask at all,
When I fill in the ones asking for existing debt i end up with Nearly half as much as the ones where i don't fill any at all.

Im confused as to whether the existing debt will have any affect on the whole process because the idea is that part of the mortgage would pay off this existing debt.

Obviously outstanding debt will affect the credit rating but i have never missed a payment. Im Just not sure why some places are asking for those details and others aren't

thanks

CloudCuckooLand

Numbers needed to understand what you are trying to do.

Amount and source of deposit?
Mortgage required?
House price?
Debt amount?
Income?

I doubt you will find a lender who will lend enough to buy a house and then some more on top to consolidate your debts. But I may have misunderstood your intention.

alter_ego_05

Hiya,

Its really tentative at the moment im literally only just started even thinking about the whole process.

the basic situation is my girlfriends Parents are looking to buy a property however Me and the Girlfriend would like to get onto the property ladder. So we have discussed perhaps me taking a mortgage for Half and her parents the other half. We have seen a property which is idea in price/location valued at 102k.

On the site where i do not have to add my outstanding debt it recommends I could potentially get a mortgage of 60K meaning if we split the mention house 50/50 its would be 51K each leaving me with 9K which I would use to do up the house/clear debts.

beecher2

Surely you'll need to pay off your existing debt out of your savings? You won't get a mortgage for more than 90% of the value of the property you're looking at.

beecher2

just read your post. The largest mortgage you could get on a property valued at 102k would be 92k. It would have to be a joint mortgage - you can't have half a mortgage each and I'm afraid your plan isn't feasible.

GMS

alter_ego_05 wrote: »

Hiya,

Its really tentative at the moment im literally only just started even thinking about the whole process.

the basic situation is my girlfriends Parents are looking to buy a property however Me and the Girlfriend would like to get onto the property ladder. So we have discussed perhaps me taking a mortgage for Half and her parents the other half. We have seen a property which is idea in price/location valued at 102k.

On the site where i do not have to add my outstanding debt it recommends I could potentially get a mortgage of 60K meaning if we split the mention house 50/50 its would be 51K each leaving me with 9K which I would use to do up the house/clear debts.

The amount a lender MAY lend you is 60k. This is not what they WILL lend.

Maximum 90% of the purchase price or valuation (whichever is lower) meaning £91,800 maximum loan on a 102k property.

Forget borrowing extra to repay debts, not gonna happen.