Mortgage Help

Aldog

Please please please can someone help us. We are looking to get some advice on a mortgage. We are first time buyers and our salaries are pretty good at $52500 and £37500 but we have a small deposit of only about £7000. The bad part is that we also have debt totalling around £30000 combined. We pay around £1200 off a month but with interest it will take another 3 years to pay off!!! We live in the south near our jobs so cant really move too far away and it is fairly expensive around here. We would look to get a mortgage of about £250000. Do we have any chance?? Is it even worth talking to the bank? We both have very good credit history. Because of our salaries we fall out of every goverment help scheme there is. The teeenage girl next door has had a baby and just been given a house in the new development we wanted to move to. We spoke to developer and they said we probably wouldn't get a place there. We are in in despair:(..... Do we both quit our jobs and then get a house? Any advice welcome..

dimbo61

Yes good idea quit work and have six/ten kids ASAP and you go straight to the top of the housing list
total wind up or what !

Thrugelmir

Tackle your debts head on.

For support and advice take a look at the Debt Free Wannabe board.

Also do a Statement of Affairs, To see where you are spending your money and identify savings. Here's a link to one.

http://www.makesenseofcards.com/soacalc.html

ACG

You could probably get a mortgage for the amount your after and enough on top to cover the loan you have.

The downside of that is the debt will be in place for 20-30 years rather than the 3 years it currently is but it would allow you to do what you want probably...however you still need to save up more money to get a decent sized deposit.

Aldog

dimbo61 wrote: »

Yes good idea quit work and have six/ten kids ASAP and you go straight to the top of the housing list
total wind up or what !

It is unbelievable! Why try???

Conrad

Ok you can get a mortgage with that level of debt if your credit rating is high and you have the affordability, but your deposit size is way too small. You watch the news so you will know the world wide credit crunch means Banks now require folk to input a healthy sized deposit.

I'm guessing some of those debts are for a car or two, I'd honestly suggest you sell them and drive bangers / a scooter, indeed I have found many wealthy people hate spending on cars and more often than not those with flash cars tend not to have much real money or assets, so having a banger is a badge of honour to those with a brain.

Why the rush to buy a home?

Sort sort debts, get saving, have cheap holidays, limit yourself to 1 takeaway per month, dont fritter money daily on magazines and coffee, and in no time you'll be ready to rock.

DannyboyMidlands

Why slag off the girl next door? It's not her fault that you've racked up £30k of debt even though you earn a combined £90k. That is entirely your responsibility so suck it up.

Pay off your debts and save a deposit. If you put the effort in you would be able to save £35k odd per year. Stop feeling sorry for yourselves and get on with it already.

Lomcevak

Assuming this isn't a wind-up, all you really need is to change your mindset. We cleared almost £20k of debt in 8 months last year off a (slightly) smaller salary than yours - live off one salary, repay debt with the other - and that's with a large mortgage to pay, three kids, and some school fees. Put your mind to it and you'd clear that debt in a year and have a 10% deposit saved within another, and then with a good credit rating, good income, and no debt, you're likely sorted for your £250k.

The teeenage girl next door has had a baby and just been given a house

She may have been given somewhere to live for a while but she doesn't own it and will never have the kind of financial security that's available to you long-term with an income of £90k a year.

Gary123456790

Conrad wrote: »

I have found many wealthy people hate spending on cars and more often than not those with flash cars tend not to have much real money or assets, so having a banger is a badge of honour to those with a brain.

Well said. Nothing more to add.

blacksta

90k combined - WOW

Aldog

not feeling sorry for myself, debt was entirely my fault. Not doing an IVA or declaring bankrupt as it is my responsibility to pay it off. P.S. you should meet the girl next door, loves to rub it in that she has a house and we don't. My tax money does pay for that as I'm sure does yours.