We want to get on the property Ladder - need advise re: loan!

Supa_Funky

Hi,

Myself & my fiance have loans between us of £16,000 which will be cleared in around 3 years.

We have had the loans over the past 4 years (we have learnt our lesson!) and we have been renting a property for the past 3 years.

I am self employed and my fiance is on a fairly good wage, however our loan payment each month are just under £600. Our rent is £540 and we can pay these no problem etc.

The thing is we want to get on the property ladder, however a lot of places wont give us the size mortage we want as we havethe loans left - we could get a bigger mortage to inc. the loans, but then that will make our mrtgage repayments higher for the next 25/30 years, so I cannot see the sense in that!

We are hoping to get the mortgage just on my partners wage, and I will take over the loan repayment once I have been trading for a year (which will be august) and can show the bank that I can make the loan repayment.

Im just wanting some advise on what people think is the best way to go?

We really wanna clear our loans and start afreash, it is so frustratin!!

Thanks

Feanor

Hi..

If you dont want to add the loans to a mortgage then the only way it will happen is to apply with the loan, but the loans will be taken into account by any lender. They will times the £600 a month by 12 = £7200 and either take that off what you both earn jointly or deduct the £600 monthly from addordability.

How much do you need to borrow, do you have a deposit at all or would it be 100% mortgage? What sort of property prices are you looking at?