Debt and getting a mortgage,

wrighty0__3

Hey, I'm looking to buy a house with my partner, with her being self employed we are more than likely going to have to obtain a mortgage solely on my earnings, £23600, I also have car finance of £190 a month, at the minute we have £2800 outstanding on a credit card 0% for 15 months, this can be cleared by 1/10/2011, I just wanted t know how much does existing credit card debt affect ur ability to get a mortgage, if I had say £1000 outstanding? This would be for another purchase, I understand it's better to not have anything outstanding, sensible answers please

roonaldo

most lenders work out your monthly credit card payment as 3% of the balance. if they do income multiples, your credit commitments would be taken off how much you can borrow, so this would only get you a mortgage of £70k- £100k based on what you said.

wrighty0__3

Yeh I spoke to l&c before and was told that would be the sort of money I could borrow, just in a predicament with what to do, my minds doing backflips with it all

handytips

Deductions from your earnings is £2,240 so drops your income to £21180 depending whether or not you have Children and your credit history is good your max borrowing is £105900 however this is a maximum which will only be achieved if you have a half decent deposit. The middle of the road way of working things is either 3.5 X Income or 4 times Income. Fantastic credit score 5 X income. But they all have different ways of working out your borrowing. If you go to Abbey for intermediaries and click on calculators you will get a better idea of what you are able to borrow, This is what we work from.