Advice needed on hubby's mortgage potential

woolly1

Hi, hoping someone out there can give us some advice.

My husband had rather a lot of debt when we met which I got him to seek advice about when I found out. His debt is around 24K, 6K of which is on a student loan which is currently deferred. The rest is with 3 other creditors all of whom have frozen the interest and have been accepting reduced payments for the last couple of years.

He moved in to my property (unfortunately he had never bought a property) which I have 90K equity in. We need to move to a bigger house this year, (we have a 2yr old and are planning another one this year), but as I am not working full time any more, when we sell this house and pay off the mortgage currently in my name I'm not earning enough to get a big enough new mortgage just in my name. What I'd like to know is - is it possible for him to get a mortgage while he has this reduced payment arrangement with his creditors? He earns about 24K.
Thanks.

MortgageMamma

Yes it is possible but it depends on

1. how much you earn also
2. how much he earns as opposed to how much he pays on the debts
3. is it an official IVA he is in or a debt management plan?
4. How big is your deposit
5. How much do you want to lend?

This is not a straightforward situation and you would be wise to seek the services of a professional mortgage adviser

woolly1

Hi, thanks for your reply.
My income is only about 6k, he's only paying £70pm towards his debts at present - this was arranged by writing and sending budget sheets to the the companies with the help of CAB, it's not an official IVA or anything.
Our deposit would be at least 90-100K, possibly more as we may be given a lump sum to help us move by his parents who intend downsizing their own property soon. We're not sure yet how much this is likely to be and I wonder if it might be more sensible to use this against his debts instead? It looks like 3 bed properties where we want to move to are around 170-200K.

MortgageMamma

You should not have any problems borrowing that amount of money even with the debts although it would be better if you paid them off when you sell house or when parents give you some cash. Your 6k could be taken into account as could any working tax credits and CB you get (only certain lenders do this)

See a mortgage broker, its the easiest way to get round this and they will help you draw up a budget and work out what the mortgage payments etc will be before you buy