What to pay back first to secure mortgage.

ljjratcliffe

Hi, first time on this board....so play nice please, it will be obvious to all i'm not financially savvy.

Ok, so, I'm thinking it's time to get on the property ladder. I'm getting too old and so need to be making a move in the next 12 months or so. May use a home buy or other type scheme, but I digress.

I've been rubbish with finances tbh. That is, not living within my means, that is until this year and i've made a concious effort no more getting credit for living costs (well, overspending costs...we live just fine). I have £8k over two cc's, £8k in loan, £1.5k overdraft (always at the hilt, just prior to pay day). Believe it or not, i've paid back a largish amount of debt this year and above (not including student loan..which I've been paying forever) is what is left.

I've had my file from experian and I can't see any bad credit on there. Everything is paid on time...no problems except I would imagine the amount of debt I have.

So, which would you think that I need to concentrate on first, to satisfy a mortage lender. Bank of mum is likely to be loaning a deposit or taking it out of inheritence. I can't pay the bank loan earlier.....unless I have the full amount..which I don't. So, it's either the cards or the OD, or O.

Oh and joint family income is around $45k (me £29,000), do you need to know that?

Also, I suppose I need to know....if i'm paying back my debts on time etc..........will the banks not loan purely on the basis of owing a lot of money, or will they just take the amount you owe (are paying back monthly etc) out of the amount they will lend?


Thanks kindly people.

Thrugelmir

Sounds like you've tackled the problem head on. Well done for that.

Paying your debt on time and without fail is a bare minimum requirement. Current debt levels will impact on affordability from a lenders point of view.

Tackling the debt with the highest rate of interest is normally the best advice. Though clearing your overdraft first is advisable. As this is a reflection to any lender of how you manage your personal finances.

I would suggest you pay a visit to the Debt Free Wannabe board.

Lots of advice and support over there. With people in a similar position to yourself.