Bit of advice really :)

firsttimebuy_3

Evening All,

Bit of advice really, i'm currently looking into buying my first house with my girlfriend.

I earn 25k she earns 17k, we have found a house and spoken to the vendor, who is willing to accept 123k, we have a 15k deposit to put down.


I have approx 5.2k debt made up of 2 credit cards 1 at £1800 and one at £1500 and a student overdraft i haven't yet paid off which is also £1900.
I did owe another £2900 on another card but this has been paid off this month due to the sale of my car to free up my half of the deposit with enough left over to clear this card.
I dont need a car as I now get a company car.

My girlfriend has no debt and never has, the only credit she has had is her phone bill which she has never missed a payment.

I checked my credit file on both equifax and experian, my experian credit score was 976 "excellent" with the only blemish on the file been one late payment 7 months (due to my own slackness).
I have no ccjs, defaults etc. I have no loans or hp agreements.

Whats worrying me though is the fact I have a meeting with a mortgage advisor on Thursday so we can look into applying for a mortgage and my credit record shows me £8100 of debt and using 74% of my available credit, obviously next month when experian updates the outstanding debt will drop to £5200 and the % i am using of my available credit will drop aswell.

Will the fact I currently have £8100 outstanding debt affect my chances of getting a mortgage though as the mortgage companies wont be able to see the 3k payment until next month.
Ideally i would like to wait until next month as obviously my credit record will look better but my girlfriend really wants this house is afraid we will miss it waiting another 4 weeks.

The mortgage adviser doesn't seem to think the outstanding amount will be a problem, but i'm aware they get commission for getting people signed up and don't want to risk ruining my credit rating by getting rejected once or twice with him chasing commission.

The other option is to pay the debt off which I could do in the next 4/5 months as we have moved in with my parents to save the £600 per month we were paying on rent.

So very sorry for the long post but do you guys think Ill be ok getting a mortgage with this debt, or would you try and put it off four weeks until credit expert updates. Other than that do I wait 4/5 months until the debt is clear as i'm very much aware from threads on this site how hard it can be to get a mortgage. (This isnt really something I want to do)

Only other thing to mention is I have a £500 overdraft on my current account that I drift in and out off during the month, not a problem as I could pay it off but it costs pennys to use, will this be looked at negatively.

I think that's everything credit score 976 one late payment 7 months ago.

Any help or advise would be appreciated greatly.

Thanks

Dave_Ham

You should be fine, unless you are seeing the Estate Agent mortgage advisor when I would not comment on what might happen...

Good luck

firsttimebuy_3

Thats a weight off my mind then Dave, just go for it even with the large amount of debt still showing this month.

Unfortunately I think I have inherited my dads ability to worry and over think everything!

Oh, the mortgage adviser works independently. He suggested he may be able to get us with Nationwide or Accord?

Dave_Ham

I am not saying it is best advice, but it is doaable...

Simon_gloster

As Dave said, using an estate agent advisor is a good shout if you want the ins and outs of Friends Provident commission loaded premiums.

Over indebt-ness.(if that word exists) can cause problems. Not all the time, as long as affordability can be proven, you should be ok.

Just go in with an open mind as you have debt, therefore your application is treated differently to someone who is debt free.

Lenders systems are linked to credit summaries and are very clever.