Mortgage and income...

Cliecost

Hi,

Quick question,

My sister has a £10k loan that has set monthly payments. She's looking for a mortgage, earns £23k a year and has been told that the loan would be removed from her yearly earnings.

So that means although she earns £23k because of the loan they will only take into account the first £13k.

Is this true?

Thanks.

Thrugelmir

The monthly commitment will be taken into account. Some lenders will also deduct the outstanding balance from any offer.

If it appears that the deposit has been borrowed to fund the purchase. Then the application may well be declined. So serious thought should be given to repaying the debt prior to application.

kloana

Cliecost wrote: »

Hi,

Quick question,

My sister has a £10k loan that has set monthly payments. She's looking for a mortgage, earns £23k a year and has been told that the loan would be removed from her yearly earnings.

So that means although she earns £23k because of the loan they will only take into account the first £13k.

Is this true?

Thanks.

They'll only deduct the monthly payments to which she's committed, not the whole 10k.

Cliecost

kloana wrote: »

They'll only deduct the monthly payments to which she's committed, not the whole 10k.

That was my query, thanks.