mortgage application- with or without debts help please

amyramsdale

hi,

as simple as i can explain it-

My partner and i are in a debt management plan- total debt being about 16000 and all unsecured. The debts are some his and some mine.

Our plan is to split the debt plan up which we can do, my debts only equate to £3000. My partner has received some ppi money and would like to donate the money to pay off this 3000.

this would make me debt free.

My partner would continue in his own plan but as he is at university at the moment he will only be paying the minimum charges.

We plan to go for a mortgage, in my name as my partner is at uni and not in employment plus still in debt. My credit score at moment reflects current debt but i have a couple of defaults but no ccjs etc. All come from the £3000 debt.

I work full time and salary is 25000 a year before any overtime and looking for a small house first time round.

What are my chances once debt is paid off and how long should i wait before applying for mortgage. This would be my only credit request as hold no other credit once current debt paid off.

Also local council offering a mortgage scheme, not the first buy scheme but the condition is they put 20% down, i put 5% down and we get a 75% loan from independent lender- again would a mortgage for between 60 to 80 grand be viable.

Many thanks

ACG

Lenders know that people apply for mortgages in 1 persons name knowing that its really a couple. Presumably you are financially linked somewhere down the line (Bank, sky tv etc).

I think you will be waiting a while to repair your credit file before you can look at purchasing. Im not sure about that scheme, i iagine the local council have conditions to meet, you then have to find a lender that will allow that sort of deposit. The credit history and the form of deposit will reduce down the number of lenders drastically i think. Im not sure this is a goer but there are more experienced advisors than myself on here that might be able to add more.