mortgage with debt advice please

needahouse

hi all,

we are looking to buy our first home, and have have found one we want, the good news for us is it only 100k. with the help of family we should have upto 28k for deposit, however we have debt of 10k of which i am paying £580 p/m to clear, because of this i would not be able to pay for the monthly mortgage until this debt is gone. i have wondered if i can get a mortgage that would consolidate this debt. i am aware we could use some of the deposit however i dont want to use a famly gift for this.
do any of you have any ideas or advice, thank you in advance.

ViolaLass

You can't get a mortgage for more than the value of the house so you would be effectively using the deposit to clear the debt. I would have thought you would struggle to get a mortgage if you can't, by your own admission, afford to pay it.

Dave_Ham

Assuming that you cannot wait till you buy, you will not get any secured finance on consolidating this debt.

Can you re-finance on a longer term unsecured basis to bring down the monthly payment. You need to be aware you will pay more back in the long term..

Unless you use deposit, or re-broker unsecured cannot see another alternative...

Good luck

needahouse

basically when i clear my debt i will have more than enough to pay the mortgage, however like was said in the above reply, we cannot wait to buy, but it seems we have no choice. thanks

ACG

£100k property...£10k debt....£28k deposit.

Pay your debt off and use the £18k as the deposit??

marathonic

ACG wrote: »

£100k property...£10k debt....£28k deposit.

Pay your debt off and use the £18k as the deposit??

Exactly... even if a bank would approve it, why keep unsecured debts at what will obviously be higher rates than the mortgage?

Personally, if it were me, I'd wait and pay off the debt first. If you cannot pay the loan and the mortgage, have you thought about what will happen when (not if) rates rise by 3%+?