Worries about getting a first mortgage...

ridgers84

Hi guys.

Just want some advice please.

My wife and I have seen a house for £163,000 and are looking at what is best to do next.

We have a 10% deposit. I earn £40,000 per yr and my wife earns £9000. I have a good credit score of 936 with no defaults etc and my wife has a similar rating.

We have some debt, I have a car loan with £8000 remaining and 2 credit cards with about £2000 each on them. My wife has a loan and has around £7000 remaining.

What are the chances of us being accepted for a mortgage. One of my credit cards should hopefully be paid of by the time we come to buy.

Any advice greatly appreciated as this is unknown territory to us.

Thanks

kingstreet

What are the monthly loan payments?

Do you have any childcare or maintenance costs?

ridgers84

Hi.

One of the repayments is £151 and the other is £232 per month. We have two children. I think we only get about £20 a month in child tax credit

firesidemaid

hi.

am not an expert, but generally mortgage lenders will either offer to lend you, for example, £19k less if you owe £19k on c/cards & loans and/or your affordability reduces by their calulated amount per month

kingstreet

I am more concerned about the cost of childcare. Please confirm if you such costs and if so, how much.

In addition, if you are paying maintenance to a previous partner, please state the amount payable.

ridgers84

Both the children are mine and I am married to their mother. If you mean childcare costs as in nursery etc, then they are c.£200 per month.

Thanks for your advice so far:beer:

kingstreet

With your current level of outgoings, lenders' affordability calculators are indicating a maximum mortgage of around £105,000, assuming 4 to 4.5x income. If you repay £2k card debt, that increases to £113k.

If you use a lender offering 5x income, you get as high as £149k, which will be just about enough for 90% of the £163k property you mention.

You are going to have to be careful with this. Some of the high street lenders with the best deals will not lend as much as you need.

ridgers84

great... thanks so much for making things clearer!