First Time Buyer Help Please

MrsHappy85

Hello everyone


I would appreciate some advice please.


My husband and I would like to apply for a mortgage soon but Im worried we wont get accepted. Can you let me know what you think our chances are please?


We have £21,000 saved up (saved over a period of four years on and off)

We would like to buy a house for about 175k and put down a 10% deposit.

I earn £21,000 a year and have worked at the same place for 6 years.

Husband earns £28,000 a year (plus 3k or 4k in overtime), worked at the same place for 2 years.

We do have some debts which I am worried may mean we wont be able to get a mortgage.

I have car finance – 3 years left at £149.00 a month

Husband has a loan with is £170 a month about 18 months left

I owe £3,400 on a credit card, limit is 4k, I pay off about £200 a month on this (more than the minimum payment) and no longer use the card for spending as concentrating on clearing it now.

I have a couple of other credit accounts that I don’t use, only small limits on them.

Husband has a credit card with a limit of 4k, rarely used, always paid off in full.
I also have an overdraft facility for £1100, I often utilize this but it is always cleared and back in the positive by my salary going in each month. I will be paying it off and removing it from my account in the next couple of weeks.
We have never missed payments on anything eand I check our credit files every few months – all looks fine on them - all green marks.

We dont struggle to pay our bills at all, we pay our rent, household bills, debt repayments, save a few hundred - 1k each moonth and still have a life.

I think the fact that I use my overdraft often is what worries me the most....

Thanks in advance to anyone who replies. Thank you :-)

Dave_Ham

Subject to the information provided you should be fine.

90% lending is quite strict, so do keep paying down your unsecured debt as much as possible.

Some of the harder lenders may not like the case, although confident you will achieve something.

Good luck

Thrugelmir

Use your savings to clear your credit card balance.

Manage your finances better. Transfer money to savings at the end of the month. This will avoid the trap of falling into overdraft.