First time buyer advice needed with debt please!

mobeyone_2

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JoeK_3

My recommendations are for you to forget the mortgage and clear your existing debts asap.

JoeK

mobeyone_2

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Ad

I cannot say clearly enough pay off your existing debts first. The country is in the financial mess its in due to just this type of example.

maninthestreet

Exactly how much debt you have at the moment- is it 30K, 16K of which is credit card debt, the rest personal loans?
What is you current gross annual income?
How much borrowing do want to take on - 126K mortgage (140k - 10% deposit), plus an addtional 30K secured loan to pay of the debts?
Where is that 10% deposit for the mortgage going to come from?

rabbit_burrow

To be honest, I wouldn't put the £30k against the house. I was in debt when I bought in 2005, and I'm glad I kept it as unsecured. I am doing fine with the seperate mortgage. Look around for a cheaper deal on your existing credit. Altough it is cheaper (payment wise) to pay for longer, it works out more expensive due to the interest. How much are you paying out monthly if you don't mind me asking? If it is about £250 per month, that leaves you with £750 for a mortgage (you can get about £100K for that depending on the lender), however any outstanding loans/borrowing are taken into consideration when they look at how much to lend you.
If you insist on doing the mortgage/lending thing though, Northern ROck do a 95%secured (basically the mortgage), and 30%unsecured (not on the house, spend how you like). It is classed as a 125% mortgage.

Sarena

mobeyone_2

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rabbit_burrow

We got a 'homestart' mortgage with HSBC, but be careful, the first 3 years (or 2 if you so choose), are INTEREST ONLY payments, then after that period, it goes to REPAYMENT, so jumps up (our mortgage was 71250, which jumps up by approx £125 per month), providing that you could definitely pay of most of your debts within that time to cover the increase, that may be a better way to go, but I strongly suggest that you speak to an independent mortgage adviser (the ones in estate agents are usually free), as they will find the best deal for you and your circumstances.