Advice Needed Please....

Dohjo

Please can someone advise me?

Have just viewed my dream home today. Would like to make an offer, but don't want to be turned down for a mortgage. New property is £225,00 so would need to borrow £150,000

We currently have a property worth approx £140,000 with a £68k mortgage in my name only.
My 2yr fix is coming to an end in September (4.69% with Natwest)

I've had this mortgage for 5 1/2 years with no missed payments, but since then had accrued rather large debts (approx £15K). I'm not proud of this, a combination of 2 kids in 3 years, working less hours, massive childcare fees, plus admittedly overspending beyond my means....

I now have 2 loans - (never missed a payment), plus 2 CC's (sometimes late / or miss payments - but both up to date) and O/D (occasionally go over limit).
I've been turned a few times when applying for new CC's to transfer balances, so really don't want to face the embarrassment of being turned down on a new mortgage.

(Sorry for being so long-winded!)
Hubby would be applying for the new m'gage with me. He is a saint with no debt whatsoever. However, he is employed 3 days a week and the rest of the time is self-employed.... Does this make things more complicated or am I worrying about nothing????

Any advise would be greatly appreciated!
Cheers
Jo

JoeK_3

My immediate reaction is don't do it.

If you can not manage you present mortgage, loans and credit cards that only add up to half of the proposed mortgage loan, how will you manage the mortgage?????

JoeK

Dohjo

Oh No! That is bad news - have already planned how I'll decorate!!

I worked out that if we had an interest only mortgage on a 3 year fix, then switch back to repayment, the monthly repayments would only be £200 more than we're currently paying.
My OH could cover this so my share wouldn't increase...
By end of fix term both kids will be in school, saving us £1000 a month in nursery fees. (One goes next year, so this figure will halve then)

My question is would we be approved for a mortgage in these circumstances, or do I have to significantly reduce my personal debt first?

Thanks again

JoeK_3

What are your incomes?

JoeK

Dohjo

Me £28,500 (4 day wk)
OH £25,000 (employed earnings) + upto £10,000 self-employed

MuDvAyNeX

£1000 for Child Care!!

JoeK_3

Dohjo wrote: »

Me £28,500 (4 day wk)
OH £25,000 (employed earnings) + upto £10,000 self-employed

From the information supplied you could make the move and there are lenders out there that would be able to help.

Get yourself a good whole of market mortgage broker and a good fixed rate for stability.

I would open a budget account to manage the outgoings better and transfer a monthly amount into this to look after itself. This way your bills will be paid on time.

JoeK

Dohjo

Thanks very much for that JoeK

I do already do this anyway for all household bills, mortgage etc, but will do so for my own accounts.

Having slept on it, perhaps it's better to wait til next year when things aren't so tight.

Thanks again for all your good advice.
Cheers
Jo