Huge Debt and First Time Buyer ADVICE PLEASE

Mr_helpful

Contact a broker. many of the deals that may suit are not in the high st You need an independent broker who is prepared to offer a no fees option there are plenty of us around.

herbiesjp

Maggie30 wrote: »

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!

Your best bet a via a fee free whole of market adviser

There are not many lenders that will look at 100%+ mortgages, so you should engage the services of a specialst in the field

HTH

Maggie30

Mr_helpful wrote: »

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.

I think in principle this could be the best option for my partner.

I think I will find an independant mortgage advisor and have a proper meeting with them. I will look online for a good one, possibly on this website.

Maggie30

Is there anyone who has personal experience of actually having debt and becoming a first time home owner?

Mr_helpful

Yes, thanks for reminding me. It wasnt fun but I managed, just with the help of a lodger or two.

Maggie30

And did you take same route that you posted on here?

(and sorry for reminding you!)

Mr_helpful

not quite, but then mortgages were a bit different. I have always advised people to get rid of debt by the smallest loan first. Some say highest interest rate but the two are often the same. As soon as you have got rid of one you can put more money towards the next but at the same time put a little aside for youselves so that you get a life as well.

densol_2

My nephew did this. He had about £20 k debt and obtained a house at £142,000. Northern Rock lent 125% of the value so he cleared the debt but added it onto the mortgage - otherwise he would never have got onto the ladder - this was with Northern Rock.

I also took on a large mortgage to clear debts and pay out my ex his half of he equity - again with NR. I found them very very helpful and keen to lend.

One thing you must remember is if YOU by a house jointly then that £60 k debt becomes YOUR debt as well - just something to think about.

If the debt is going to be consolidated into the mortgage then the cost of it would not come off the income multipliers.

Through a broker your partner and yourself could borrow quite a lot of money - BUT again someone that has borrowed so much money unsecured ( does he have substantial assets or has it just been frittered away ) could be a financial liabilty.

Mr_helpful

Densol is right about the debts becoming yours if you have a joint mortgage. If its a case of his bad management and its not going to get better then dont go for it or at best make sure house is all in his name and you are just a named party. Once you have the mortgage you want to get a good plan together so you can overpay and get rid of the unsecured debt and remortgage as soon as redemption is up on to a better product. The 125% NR product is good but its not a particularly good rate which is why its best to talk to a broker and look at different angles.

kenshaz

Use £60000 from your salary to pay off the debt and live on the remaining £40000 sorted in 12 months.