Debt and getting a mortgage

JennyS_2

Hello everyone,

I'm hoping someone will be able to offer some advice.

I was hoping to get a mortgage, however I have £12,000 of debt on a credit card. I intend to get a personal loan to cover this (and stop the interest mounting) however, a financial advisor said that it didn't matter whether the debt was on credit card or a loan, mortgage lenders would view this negatively.

Does this mean I will have little chance of getting a mortgage for 5 years until the loan has been paid off? I thought loan repayments would simply be calculated with other monthly outgoings?

Thanks in advance, Jen

CLAPTON

it means that lenders will take into a/c your circumstances including your debts... some just look at the amount and some look at 'affordability' as well as your earnings and the size of deposit. but if everything else is OK you will be able to get a mortgage

Redbedhead

I believe it means they will take in to account your current borrowing when determining the size of mortgage they will give you.

i.e. if they decide you can pay back £1000 a month, but your loan repayment is £200, they will give you a mortgage with equivalent repayments to £800 per month.