Huge Debt and First Time Buyer ADVICE PLEASE

Maggie30

Hi all, this is my first post. I really need some advice!

My partner earns just under 100k a year, but owes 60k. We would really like to buy our own home, but- before I make a potential fool of myself by asking a mortgage advisor face to face..........I would like to ask for advice from everyone on here.

Is it possible to consolidate his debt as part of a (first time buyer) mortgage?

I realise this probably sounds silly, but wondered if anyone has an experience of having debt and applying for a first time buyer mortgage?

Any thoughts on this situ..........woul be greatly appreciated!

Many thanks.
Maggie. :embarasse

dmg24

Would it not make much more sense to pay off the debt first, rather than just taking on even more debt? x

Maggie30

It would..........and we are doing this right now.........But I wondered if it is possible to add it to a mortgage.

As you can tell am not an expert on this..........hence my post.

wymondham

dmg24 wrote: »

Would it not make much more sense to pay off the debt first, rather than just taking on even more debt? x

plus whilst you're paying off the debt, the hopefull fall in the housing market will be taking place and you'll be in a better position to buy at the end of it all...

Maggie30

well yes, you are right......hopefully house prices will drop. Although we would not want to buy a huge property. Maybe even a small flat. Just wondered if anyone has experience of adding debt to a first time mortgage.

dmg24

There are mortgages available where you can get an unsecured loan on top of the secured mortgage (such as the Northern Rock Together Range), but I would be surprised if they would lend such a large unsecured amount.

However, I am not a professional in this area, so I may be wrong!

Please do not feel that you have to answer, but could I ask how this debt has been accrued? It is a massive amount for someone without a mortgage.

Another point to consider is, do you really want to be paying off the £60,000 over e.g. 25 years. This will make it a massive amount that you are eventually paying off, over £200,000!

Always worth answering the question, but I really wouldn't consider it at the moment x

Mr_helpful

If you really want to do it I would try for a 125% mortgage and pay down the debt as much as possible and then remortgage to a flexi and carry on paying off the debt. waiting for a property crash may not be good you may wait a long time. but if interest rates rise there will be a feew more repossessions to snap up.

Maggie30

Am only exploring the idea of adding debt to a mortgage because as I understand it.....you cannot get a mortgage with such sizable debts regardless of how much money is earnt each month/ year.

Am I correct in thinking this?

herbiesjp

Not entirely correct

As long as your incomes can support the debts and the mortgage you will be fine. HOwever it all biols down to affordability - what the debts cost you each month and what the mortgage will cost you each month

YOu can consolidate all into a mortgage, but there are certain limitations, so you may not be able to consolidate all of the debts

HTH

Mr_helpful

Not exactly basically the monthly payment for the debt is taken off the gross salary before the income multiple is applied so if his 60K is costing £2000 a month that X 12 is 24K which is taken off 100K salary so now for mortgage purposes he only earns 76K. This is then multipled by income multiple say 4.5X to give total mortgage lending of 342K. This is a little oversimplified but gives the principle.

Maggie30

So, it may be that we do have another option.

I was really concerned that it might not be the best route: adding the debt to the mortgage but didn't think we had any other options.

Can my high street bank give me some advice on this situ or should I find a mortgage advisor? Bearing in mind I don't want to pa any fee's and only want advice not to sign up for anything.

Many thanks for the advice so far..........really really am very grateful!