First Time Buyer - Please help

darren_5

Hi,

Me and my partner are looking to get on the property ladder in about 10 months time. However, we have no clue if we realistically we will be approved. We have around:

13k deposit

At the time of applying we will have debt of around (1 loan 2 credit cards) - Around £4,000

My partner has a permanent job with a salary of £16k
I am on a contract on a salary of 23k

Not sure about the property amount but probably a minimum of £120,000

Appreciate any advice.

Darren

cattie

If you have savings, why on earth would you have credit card debts? Get the loans and the cards paid off asap.

brit1234

I would pay off your debts first and perhaps get a bigger deposit and costs.

Can you do that in 10 months? May be worth cutting back on a few things till then.

darren_5

Right ok, so is there no way you can get a mortgage with debt? We are desperate to get out of the renting cycle. Especially as where we are now we are tied for 12 months and are really not enjoying the area.

darren_5

What about these shared equity schemes?

hcb42

search for shared equity on here, read some of the experiences -and then make up your own mind. Enough sob stories to put you off for life I would expect.

You "can" get a mortgage with debt, but as your deposit is quite small, and your joint income not especially high, it will affect your affordability. Plus the higher the deposit, the better the rate, which will make things easier for you - as house owning is not cheap.

Wipe your debt, save hard for ten months to replace the savings, with a bit more on top hopefully, and you will be in a strong enough position.

ACG

I think you would be able to get a property for around £120k, im not sure you would be able to get much more than that but if you stick to £125k as a maximum atleast then you dont have to worry about stamp duty.

A lot depends on your contract work though.

Dave_Ham

Your incomes are ok for a conservative mortgage and the debt.

Your issue will be your deposit, as 10% is the magic number as a minimum..

Given the Stamp Duty kicks in at £125k, would assume you need to duck in under this to make it all happen.

Suggest a broker based upon the contract employment..

Good luck

darren_5

Thanks for your comments.

What would a bank/mortgage provider look worse on.

A mortgage loan?

A graduate loan?

Would my student debt cause issues? General student loan for course fees etc from university from the student loans company?

Darren

darren_5

Dave_Ham wrote: »

Your incomes are ok for a conservative mortgage and the debt.

Your issue will be your deposit, as 10% is the magic number as a minimum..

Given the Stamp Duty kicks in at £125k, would assume you need to duck in under this to make it all happen.

Suggest a broker based upon the contract employment..

Good luck

Thanks for your comments.

What would a bank/mortgage provider look worse on.

A mortgage loan?

A graduate loan?

Would my student debt cause issues? General student loan for course fees etc from university from the student loans company?

Darren

Dave_Ham

Darren you are over-thinking this a wee bit. See a decent broker and this can all be sorted.

In answer to your question, all the lender looks at is total loan amount owed and what the monthly commitment is. Student loans are viewed slightly differently..

Certain lenders will be unhappy with unsecured debt when looking to purchase in any case..

Good luck....