FTB mortgage help

lcgoodac

My partner and I have just found out we are expecting a baby at the end of the year. We both work for the nhs him full time and myself part time. We are looking at properties for £140000 with a deposit of £30000 so needing a mortgage for £110000. The only issue is that i have £10000 of debt on credit cards which I have never missed a payment on and is split between several 0% deals.
My partners credit history is excellent and mine good due to the several agreements.

How likely is it that we can get a mortgage of that sort?

Any advice would be fab

thanks

Lucy

kingstreet

Assuming you have a joint income of more than £41k a year, most lenders will entertain an application of 3 x joint income at a loan to value of 78% (£110k on £140k).

If you can get to 75% or less, extra deposit of £5k, you'll find mortgage deals are even better and your costs correspondingly lower.

shortchanged_2

Why don't you clear your debt with the deposit money and try and save a little longer to rebuild your deposit?

CloudCuckooLand

I see from other posts that you have had trouble getting rejected for credit cards. Just check your credit record thoroughly, to see how many searches are on there.

Run the number by here, or with your mortgage broker to see if that might be a hurdle.

Thrugelmir

The credit card debts will impact on affordability calculations. Suggest you repay the debt and use £20k for the deposit. While the card balance is 0% interest its making you money. Once this initial period is over what then?

ViolaLass

shortchanged wrote: »

Why don't you clear your debt with the deposit money and try and save a little longer to rebuild your deposit?

Because the cards are on 0%.

OP, what do you mean by "several agreements"?

shortchanged_2

lcgoodac, you say you have never missed a payment for your debts but are you just paying the minimum in which case that amount of money will take years to pay off even if it is interest free.

I don't know why you are so averse to using your savings to clear the debt otherwise by having a mortgage as well you are just adding to the debt mountain.

Think about it. If you clear the debts and start afresh you can put the money you are paying to service the debts into savings instead.

shortchanged_2

ViolaLass wrote: »

Because the cards are on 0%.

OP, what do you mean by "several agreements"?

Ok it's interest free but it's still debt. Get rid of the stuff and start afresh because if times get tougher I guarantee the debt will increase.