FTB - should I even bother......

bogratsteve

Hi guys,

First time poster but been lurking for years.

I am looking at a £99,950 new build house and have a £10,000 Deposit in place, I'm 39 and the wife is 45, we earn £27.5K & £8.6K respectively with a car loan of £180 per month BUT have outstanding c/c's of £23.5K

Now I really do think I know the answer but is it worth us even bothering to apply for a mortgage or will we be laughed out of court?

Honest answers appreciated guys and girls, I know the c/c's need to be cleared ASAP but i'm paying a fair whack of rent every month and it would be cheaper to have a mortgage

marathonic

Pay the 10k off the credit card with the highest interest rate. Then continue to pay off the cards as quickly as possible. Make sure to not miss a payment on anything and look at applying again in 12-18 months.

Holding £27.5k in credit card debt whilst having £10k on deposit is doing you no good.....

bogratsteve

Yeah I fully appreciate that TBH - opportunities have arisen on the house that make it only available imminently and when gone then that's what will be done.

the outstanding is £23.5k not £27.5k but I'm more wanting to know if its worth bothering applying as opposed to how to reduce the balance.

marathonic

Well others more knowledgable than me will reply with information on your chances of approval but I wouldn't be too confident.

If applying jointly, I think you'd need a 20 year mortgage as your wife is 45. This would make your mortgage repayments bigger and, when added to your credit card payments, you may not pass the afforability test - especially when they stress test the repayments.

It'll probably be a similar dilemma if you apply in your own name - smaller income means higher salary multiple.

marathonic

Just to add, there's no panic anyway. Most people don't see prices shooting up over the next year so you don't have to jump on the property ladder out of fear of 'missing the boat'. Only buy when you can afford to do so.

kingstreet

Even after the debt payments, you'd still be able to borrow around £80k, based on 3ishx the £25k you have left over.

Whether it is sensible to purchase a property with that level of debt is debatable. However, mine is not to reason why.

You CAN get a mortgage. Whether you SHOULD...?

Thrugelmir

bogratsteve wrote: »

but i'm paying a fair whack of rent every month and it would be cheaper to have a mortgage

Suggest you have a light bulb moment and rent a cheaper house.

Majority of lenders will rate you in the category of "inability to manage personal finances".

So any action is up to you. Don't expect lenders to show any empathy.

bogratsteve

Thanks guys, fair comments and I'm fully aware I've not been handling the debts well, the results of a previous well paid job and been silly!!

The age thing has really hit home just recently!!

Thanks again