FTB mortgage help please?

*twinkletoes*

Hi,
Just wondering if someone in the know can give a bit of advice please??

Myself and my husband are looking to buy our first home together, here is our current situation...

My husband owns a flat, this is in the process of being sold, offer has been accepted. I am a FTB. We are renting a flat elsewhere.
Once the sale has gone through we can pay off his mortgage and all of our debt. This leaves us with around £9k to use as a deposit. Not a huge amount but debt free & about £700 better off per month (mortgage & loan payments).
He earns 24k per year. I normally earn 15k but currently covering maternity leave and gone up to 17.5k (minimum 9 month contract, could be extended).
Only other outgoings are mobile phones, car insurance etc. nothing huge.
Some mortgage calculators are giving us around 100k, some up to 180k.... It's varies so much!
We are thinking we will wait a while and boost our deposit with what we would usually pay our debts with. But we'd love to get on and find a new home!!
We live in Cornwall and house prices are unfortunately high. Hoping to get the higher end of the scale really!
Any thoughts on these NewBuy, government backed schemes? Will we count as FTB's as at point of buying neither if us will be homeowners??
Where is best to go? Looking at Nationwide for best deals?!

Any advice much appreciated!!!!!
Thank you in advance!

Dave_Ham

I am not saying this is the best course of action, but you may find keeping some of the unsecured debt and bolstering up your deposit may give you other options.

You will not be considered as first time buyers by almost all lenders and if you search the forum you will find loads of views on the government backed schemes.

For me personally, it depends upon the client and the development/scheme. Have seem some stack up and look fair and some not so. Tipping point is usually the valuation of the properties vs the local market prices.

*twinkletoes*

Ok thanks for the advice. We did think about keeping some debt to have a bigger deposit. We are getting about £28k from the house sale after fees but have about 19k debt between us!! It's depressing!
I guess we are lucky to be in a position where we can pay off the debts though.

How about the fact that I am temporarily on a higher income? Will that make a difference in mortgage applications or will lenders base it on my normal income. My current position is a 9 month contract but there is a chance it could become permanent.

I do read the other threads, it's just good to get advice based on my own situation.

Thank you.