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looking to buy

sugarbunny2012
sugarbunny2012 Posts: 5 Forumite
in Mortgages & endowments
We're looking to buy a 25% share on a house via shared ownership.
We were wondering how our credit situation would affect getting it.
The mortgage we would need to borrow 26,500 for that 25% share.
My boyfriend is about 2k overdrawn and I'm about a hundred pound over. We both have credit cards I have about 500 on and my boyfriend has about 700 on his two cards. we both have good credit, just wondering how this would affect us??
Thanks

Comments

  • ACG
    ACG Posts: 24,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Do you have a deposit saved up?

    You need to have a deposit and be out of your overdraft for around 3 months.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • sugarbunny2012
    sugarbunny2012 Posts: 5 Forumite
    yes we have more than the required minimum deposit but there's no way we can get out overdraft so soon. we are both on decent paid jobs, i don't understand how such a low mortgage could be affected by our overdrafts.
  • ACG
    ACG Posts: 24,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If your constantly living in an overdraft, then your constantly borrowing money - which to a lender means your living beyond your means.

    Affordability wise your income may support the rent and mortgage but why would they want to lend to someone that cant keep their bank account in credit? (Im not having a go, its just to look at it from their point of view).

    If you have more than the requirement saved up then why not use that to clear the overdraft.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    sugarbunny2012 wrote: »
    My boyfriend is about 2k overdrawn and I'm about a hundred pound over. We both have credit cards I have about 500 on and my boyfriend has about 700 on his two cards. we both have good credit,

    Not "good credit" from a mortgage lenders perspective.

    Suggest you use your savings to get your financial affairs in order. Then learn to budget. Lenders will be looking for financial discipline. As a mortgage is not a commitment to be taken on lightly.
  • sugarbunny2012
    sugarbunny2012 Posts: 5 Forumite
    the thing is that we know we can afford it its not a problem we already rent and that cost more than that what the mortgage would be..
  • ACG
    ACG Posts: 24,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    No point trying to convince us, we have no say over the matter.

    Youve asked a question, weve answered it. Its entirely your decision whether you apply or not with your accounts as they currently stand.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    sugarbunny2012 wrote: »
    the thing is that we know we can afford it its not a problem we already rent and that cost more than that what the mortgage would be..

    Unfortunately your opinion of your finances does not accord with that of mortgage lenders. Who will view matters in a different way. There's no negotiation either. So entirely up to you as to how keen you are to get onto the property ownership ladder.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Thrugelmir wrote: »
    So entirely up to you as to how keen you are to get onto the property ownership ladder.

    And don't forget that ladders lead down as well as up.
    Free the dunston one next time too.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    kidmugsy wrote: »
    And don't forget that ladders lead down as well as up.

    Owning ones home. Allows security and peace of mind. Makes life a whole lot easier.

    The value of it shouldn't matter.
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