Chances of Getting A Mortgage FTB Advise Please

Sobewannabe

Hi All,

What do you think my chances are earn £34k have a deposit of £70k and looking to purchase a property up to £180k. Currently have no credit card debt but have a car loan of £8000 and personal loan of £7500 which both have 30 months left to run.

I have never defaulted on any payments have no CCJ's and have approx £1400 spare cash each month.

I really want to buy my first property do you think I stand a chance of getting a mortgage??

Thanks

talksalot81

I dont imagine you should have any trouble.

talksalot81

I dont imagine you should have any trouble.

luckyfool

Unless the payments are huge on your two loans there should certainly be lenders out there willing to do the mortgage for you.

Do make sure you sit down and work out your budget properly including your outgoings to credit, your monthly mortgage payment, and any other outgoings (be careful to include any payments that will start when you own your own property that you may not have just now). Also think about what would happen if any big expenses come up such as repairs to the house, a car etc.

MonkeySaving?

Clear the loans using £15500 of your deposit, that brings your deposit down to £54500. On your salary, with that kind of deposit you'll have absolutley no problem getting a mortgage for £180k plus you're safe in the knowledge that you are debt free Mortgage interest rate or loan interest rate, i know what i'd choose.

talksalot81

MonkeySaving? wrote:

you're safe in the knowledge that you are debt free

Huh? A mortgage is a debt as well.... he'll be in the biggest debt of his life!

peterg1965

I reckon you will have no problems, particularly with the size of your deposit and you are borrowing about 3.5 times income which is about right. Talk to a few lenders and see what they say about paying your unsecured debts off first.

herbiesjp

As already mentioned, possible the best course of action would be to clear the debts and reduce the deposit.

You will find lenders able to agree that higher mortgage amount.

By clearing the debts you will be increasing your monthly affordability, as they will normally charge higher interest rates.

Also, if you have that amout of spare cash each month, you may want to overpay on your mortgage - so make sure you find a scheme that allows you to do that and chrages interest on a daily basis to take full advantage of such ad hoc capital overpayments.

HTH

MonkeySaving?

talksalot81 wrote:

Huh? A mortgage is a debt as well.... he'll be in the biggest debt of his life!

I was talking in the context of the loans...