Mortgage Information

Mon3y

Just in theory trying to work out whether mortgages would be available for this scenario;

• First time buyers
• Currently living with parents
• Combined income of £41,500
• Both in full time employment
• One of us has approximately £5000 in debt (on an overdraft and a credit card), no late payments
• Both Fair credit rating

We currently have £7500 in savings and were wondering what the chances of a reasonable mortgage would be.

Cheers
Mon3y

marshmallowkisses

Myself and my partner were just approved by Clydesdale bank for a 94% LTV mortgage on a £150k property.

We were in a similar situation with regards to the debts, however the lender seemed to think that because we had proved we were paying those off fine, were both in full time steady employment (2 years +) and had good credit we would be fine.

A major factor I think may play in your application, from our discussions with the lender was that she thought it looked good that we were paying rent, and household bills at the same time. Not sure on how your situation is i.e. do you pay board that is taken off your bank accounts every month?

Anyway, it's worth trying, You've nothing to lose (if you can wait another 6 months if rejected to build up credit scores again)...but generally they look at affordability, credit score and history.

Good luck!

R_P_W

What is a reasonable mortgage? What sort of house prices are you looking at?

In my opinion it is bit crazy having savings and then having an overdraft and card debt - what is this costing you a month?

If your both living with parents and in this situation are you sure you can take on not only the mortgage but all the other costs? Fees, furnishing etc

ACG

Your deposit is the think limiting you here.

Ignoring the debt, you could borrow around £120-140k. You really need a 10% deposit so you would need about 12-14k, plus money for solicitors etc.

With the debts, its probably not down towards the lower end of that.

Did you have a purchase price in mind?

Thrugelmir

Mon3y wrote: »

We currently have £7500 in savings and were wondering what the chances of a reasonable mortgage would be.

Cheers
Mon3y

Clear the £5k of debt from your savings first. Little point in kidding yourselves otherwise.

If you are living at home with parents. Should be possible to save a good deposit within the next year.