Can we secure a mortgage?

Jeffthecat

Hi
New to the forum and have a quick question, and after some advice, regarding our chances of securing a new mortgage on a House we've found;
We've had an offer of £192,000 on our property, repaying a £158,000 Santander Mortgage.
We're looking for a mortgage of around £135,000 with a 10-15% deposit on top, but our circumstances have changed since we took out the Santander mortgage.
I earn £36,500 before tax (+ an annual bonus of around £4,500) and my wife earns £6000 pa while studying with the OU.
We're just about to clear a £22,000 loan leaving us with around £12,000 in credit card debt all on 0% interest.
Can we get a mortgage based on the above or are we kidding ourselves?
My credit report was 'fair' while including the loan.
Would very much appreciate any help and advice available.
Thanks
J

Wh05apk

Th credit card will be the problem, lenders typically take between 3-5% of the balance monthly, and deduct it from your income for affordability, potentially that will drop you to about £35k, £135k will then be about 4x income so you should be ok.

Thrugelmir

Jeffthecat wrote: »

We're just about to clear a £22,000 loan leaving us with around £12,000 in credit card debt all on 0% interest.

The credit card debt may well be a problem. As in essence more or less equals the deposit on your new property.

Have you considered borrowing even less in order to make inroads into this debt?

Let_Us_See

To answer your question.......yes, it should be possible based purely on income, although other factors, such as credit history etc., may apply. Your £12,000 credit card balanced annualised at 5% equates to £7,200 and negates your wife's income and reduces your income by £1,200. As long as your annual bonus has been regular a lender will possibily accept 50%, leaving you with a gross income of £37,750 for mortgage purposes or borrowing ratio of 3.57. This should be attainable. Your credit card balance may alienate some lenders.

Jeffthecat

Thanks for the replys, managed to secure an agreement in principle with Nationwide via a broker. Now just need to sort an affordable solicitor for conveyance as the estate agents at both ends have recommended theirs but they seem awfully expensive?!