First time buyer with a CDL

tracey1302

Hello there!

I'm just looking for a little bit of advice on when and how to apply for a mortgage with my boyfriend.

I've been studying for my doctorate for the last three years. In my second year, I applied for a Career Development Loan from Barclays of £10,000 to cover my tuition fees (£3800 per year) to help me with living in the last two years and for my fieldwork. I finish my PhD next month and am currently lined up for a £32k per year job in academia to start in September.

I have a few blibs in my credit history but nothing substantial. I was late in paying two minimum payments for my credit card in 2011. I am also still in my student overdraft (however, this was arranged with Natwest at the time that I began my PhD as they agreed to apply student terms to my account again so my overdraft is substantial but arranged and interest free)

Me and my boyfriend have been privately renting a house off my sister for the past two years and when I've secured my position and paid off my overdraft, we're thinking about saving for a house. I begin payments on my CDL in October at £200 per month.

I was just wondering how we are best playing applying for a mortgage. I understand I'd need to wait until I'd been in my position for three months anyway. Would we struggle until I've proved I'm okay with paying back my CDL every month? Would we struggle to be successful in applying because I have £10,000 of debt behind me already? With my salary being relatively high, I am confident we'd be fine in saving for a deposit for a house between the two of us (we have no dependents and our rent and outgoings are low).

Just looking for a bit of advice!!

kingstreet

Some lenders will accept you before you start work, provided you have a written offer and confirmed start date.

The loan payments will be deducted from your income for affordability purposes, as happens for any credit commitment with more than six months left to run.

Try a few online affordability calculators to see the impact. At £316 per month, a lender offering 5x income will "tax" your affordability by £19k for that loan payment.