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Do we use 50k as deposit or to clear DMP?
alisaver
Posts: 17 Forumite
Hi, I've browsed through the forums and can't seem to find an answer that fits my question so hoping its ok to jump in and ask.
My husband has a Debt Management Plan with Stepchange (who have been incredible). He has so far paid off 17k of his 35k debt. He has recently had to reduce his monthly payments due to my income reducing following redundancy (my new job pays less).
His credit rating is bad, I've no idea what mine is like but I don't have much debt (£350 on a credit card and a £250 overdraft), which I make regular monthly payments to.
We are extremely lucky as my dad wants to give us £50k to help us get a bigger house (we have 2 children and a 2 bed house where the 2nd bedroom is not even a good single size).
My question is: Should we use this £50k to pay off the rest of my husbands debt or use the lot as a deposit? We would be looking in the £230-250k mark in order to get a house the size we need. We are desperate to move and give our children the space they need but just don't know where to start.
Thanks so much in advance to anyone who has any advice at all.
Alison
My husband has a Debt Management Plan with Stepchange (who have been incredible). He has so far paid off 17k of his 35k debt. He has recently had to reduce his monthly payments due to my income reducing following redundancy (my new job pays less).
His credit rating is bad, I've no idea what mine is like but I don't have much debt (£350 on a credit card and a £250 overdraft), which I make regular monthly payments to.
We are extremely lucky as my dad wants to give us £50k to help us get a bigger house (we have 2 children and a 2 bed house where the 2nd bedroom is not even a good single size).
My question is: Should we use this £50k to pay off the rest of my husbands debt or use the lot as a deposit? We would be looking in the £230-250k mark in order to get a house the size we need. We are desperate to move and give our children the space they need but just don't know where to start.
Thanks so much in advance to anyone who has any advice at all.
Alison
Proud to be dealing with my debts
0
Comments
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Most lenders who will consider the DMP (And there are not many) will insist the DMP is cleared in full (NOT full and final settlement).
On top of that your typically looking at around a 25% deposit.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Maybe selling up and renting a larger property would be a more realistic option?0
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