Mortgage Advice Needed - Please

Debz38

I would be grateful for any advice anyone could give. My husband and I have been renting for over 3 years at a rental of £720 per month and I desperately want to buy a house. Our joint income is £38k and have debts of £15k. We live an area where a 2 bed prop would set us back £185K and we have no deposit but would put it on a card just to get back on the ladder. Does anyone think it likely that we would get a mortgage. We both have fantastic credit rating and have never defaulted on anything. Any advice or info would be much appreciated.

herbiesjp

Whilst you have a good joint income - I would suggest that a lot of your income would be taken up with your current debts.

Adding to the debt situation by looking at putting extra on a card will go against you in two ways - 1) it will reduce your affordability each month 2) it will reduce the amount a lender can look at lending you

You are looking at close to 5 times your joint income, however that is without taking into account your current outgoings.

Have you looked closely at the figures to see if this is affordable to you?

Debz38

£9k of the debt finishes Aug 2008 and the rest is on a credit card - we currently have a savings scheme with Kingfisher which ends Nov 2008 where we would have saved £10k - with this scheme we had the option to purchase B & Q shares at a very low price and at the end of the saving scheme we have the option to sell these at the current market price so we could be looking at a nice profit. I know the most sensible thing to do is to wait until this point but I am so scared that by this time we would have missed the boat yet again as far as the market is concerned and then it would have been 5 years of renting ! If only I was Mystic Meg !