Mortgage whilst having a loan

MarkBowness

I earn £30,000 per year. However, I currently have a loan of £25,000. Nevertheless I have been renting property for about four years and I am sick of putting dead money into dead property. I am currently living in a nice maisonette paying £600 per month but I have the option to buy it at £130,000. Are there any mortgate companies who would offer a mortgage knowing that I have a £25k loan?

Mark

dougk_2

Assuming you have no deposit , I think you chances would be slim on getting a "competitive rate". I am sure there is someone (specialist lender) that would lend you the money, but you would pay a high price for it especially as £130k is over 4x your salary.

Your mortgage payments would then be higher than the £600 you pay and you then have additional bills too (buildings insurance, maintenance etc).

Joe_Bloggs

@Mark
One year ago I earned the same amount and had the same offer but I had £30000 in savings. I found it a struggle to get a mortgage.
How long is this debt for and what is the interest. What did you use the money for ? What are your repayments. In many schemes you are not given consideration unless you have 5% deposit (£6500 in savings).
The interest only on 130000 at 5% is £542 and £650 at 6% per month.
J_B.