first time mortgage

jready118

Hi

Looking for some advise on first time mortgages.

Myself and partner are looking to get our first house. We're looking at getting a deposit for our first house of about £10,000 from savings and with help from families. Probably this time next year hopefully we'll be there.

Both of us are employed full time and earn circa £55,000 per annum together.

She is debt free and i'm clearing debt now, Loan will be gone in October. Then will have £10,000 split between 3 credit cards :mad:

Considering getting a loan to clear all those then and to close them down. So having one active credit account e.g. a £10,000 loan which I want to clear over 2 years @ £400 per month

My question is will we be able to get a mortgage with me still having so much debt? Even with our deposit saved?

Niether of us has ever missed a payment nor do we have any CCJ etc. We're both on electoral roll and I have a good credit history (e.g. several completed loans and paid off credit cards etc.)

I'm worried that my debt will impact us both, is it possible to get an answer with out going thru the application process? Has anyone experienced similar?

Any thoughts or advice would be welcomed

Thanks

_Andy_

Hi and welcome to MSE

With a £10k deposit you're probably looking at a property value of around £100k. Which on your income, even with the debts, should be perfectly doable.

Having debts doesn't mean no mortgage, it does mean though that during a mortgage application, the outgoings of the debt will be taken into account in what's called 'affordability'.
If you have a look on a few lenders websites and pop in your income and outgoing figures you can get an idea of what's likely.

Hope that helps

Thrugelmir

Use your savings to clear the debt.

Little point in paying out more interest than you are earning.

From a lenders point of view you've borrowed your deposit.

HappyMJ

jready118 wrote: »

Hi

Looking for some advise on first time mortgages.

Myself and partner are looking to get our first house. We're looking at getting a deposit for our first house of about £10,000 from savings and with help from families. Probably this time next year hopefully we'll be there.

Both of us are employed full time and earn circa £55,000 per annum together.

She is debt free and i'm clearing debt now, Loan will be gone in October. Then will have £10,000 split between 3 credit cards :mad:

Considering getting a loan to clear all those then and to close them down. So having one active credit account e.g. a £10,000 loan which I want to clear over 2 years @ £400 per month

My question is will we be able to get a mortgage with me still having so much debt? Even with our deposit saved?

Niether of us has ever missed a payment nor do we have any CCJ etc. We're both on electoral roll and I have a good credit history (e.g. several completed loans and paid off credit cards etc.)

I'm worried that my debt will impact us both, is it possible to get an answer with out going thru the application process? Has anyone experienced similar?

Any thoughts or advice would be welcomed

Thanks

Personally, I would attack the debt with everything you earn. £400 a month from income of £3,500 per month isn't very much. It might seem scary to do but as soon as you are paid then use your entire pay to pay down the credit card debt and then carefully use the credit card over the month to purchase whatever you need.

With the ability to borrow £150,000 based on your income I would be trying to get savings up to about £20,000 to buy a better house worth about £165,000. It depends on your area though you might get a nice house for around £100,000.

You will have little problems borrowing £90,000 as stated in the last post with £10,000 deposit and monthly commitments of £400 being deducted from your income.