1st time buyer - Mortgage paying off a loan?

Ol!ver

I'm a first time buyer, and have a slight problem.

I'm paying off a 15k loan over 2 years (car loan along with settling the credit card), and it's obviously costing me a fair whack a month. Now with this running I can't afford a mortage as well. Is it possible to take a loan out that will let me write off this loan, and basically add it to the mortgage?

I'm rather clueless when it comes to mortgages you see.

Cheers

LisaT186

Dependant on income and house price there may be lenders that would consider lending 100% + to enable you to consolidate and buy a house. That said, if you can wait the 2 years you will pay less interest. Consolidating onto the mortgage means you will take maybe 25 years to pay off that car loan.

Ol!ver

LisaT186 wrote:

Dependant on income and house price there may be lenders that would consider lending 100% + to enable you to consolidate and buy a house. That said, if you can wait the 2 years you will pay less interest. Consolidating onto the mortgage means you will take maybe 25 years to pay off that car loan.

Yeah I know waiting the 2 years would be best, but I don't know if it's feesable now my curcumstances have changed.

LisaT186

If you can't then yes there are lenders that will lend in excess of 100% to help you, all dependant on income and credit score.

Ol!ver

LisaT186 wrote:

If you can't then yes there are lenders that will lend in excess of 100% to help you, all dependant on income and credit score.

That's cool. I'm not wanting to be out of home for about 12 months or so anyway, so at £530 pcm it'll have come down nicely anyway. I figured £9k added onto a mortgage over 25/30 years would make next to no difference. Am I right in that?

LisaT186

Somewhere around £57 per month at 5.75% repayment for 25 years

(hate to say it but over 25 years that's £17,100 assuming rates do not increase)

Ol!ver

LisaT186 wrote:

Somewhere around £57 per month at 5.75% repayment for 25 years

(hate to say it but over 25 years that's £17,100 assuming rates do not increase)

Would I be best just re-doing the loan over a longer period then? Say, when it gets to 10k left? I'm not sure it would tbh.

LisaT186

That's where a broker will help at the time. You'll need to work out how loan payments affect your borrowing capacity, to see which way to go. If you can afford it and the product is out there when you are looking, you could consider putting the loan on the mortgage but overpaying to reduce it quicker, therefore not paying interest over the whole term but freeing up your income for multiples.

Ol!ver

LisaT186 wrote:

That's where a broker will help at the time. You'll need to work out how loan payments affect your borrowing capacity, to see which way to go. If you can afford it and the product is out there when you are looking, you could consider putting the loan on the mortgage but overpaying to reduce it quicker, therefore not paying interest over the whole term but freeing up your income for multiples.

Thanks for the help. I was a bit worried that I was stuck, where I wouldn't be able to move until the loan was paid off. As long as there are ways around the problem I'll be a happy camper.