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Mortgage Advice

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Hello, can I ask for some advice.

I'd like to buy a house, we currently have a shared ownership property however it's not working for us and it's evident that we paid too much for it.

We can borrow £125K so say Halifax using their calculator.

I have debts (not so bad) on my credit card which amount to £100 per month. I have used these to pay for business costs.

Seperate to this we have a business that is doing okay, however I don't think we can use the business figures as income calculations as we don't yet have enough history.

I have no deposit and no money to pay the costs. I have £2K that will be paid to me soon.

We need to move as 1. We need more space 2. We are paying business storage costs of £70.00 per month and travel costs to go between 3. The rent increased often and we are wasting money. 4. We want our own home so that we can try to pay off the mortgage.

So does anyone know what I can do. A plan was to borrow the money and then apply for the mortgage a few months later. When I add this to the mortgage calculator for example £300 as monthly repayments for debt, I'm still being told I can borrow £97K - which is enough for what we want.

Any help would be great, however I feel like I'm getting old and need to move quick :D

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Borrowing the deposit for the new property won't work.

    You need to address your current debts. Review your budgets and find a way to scrimp and save. Either overpay your current mortgage or save the money into a deposit account. This will build you more equity with which to fund the purchase.

    The 0% juggling act will end one day. So you need to plan your exit route.
  • Will the current debts be an issue... it's just that I have included them on the calculator and it says I can still have X amount. Is that true? I only ask because when I took my current mortgage I was questioned on all of my outgoing payments from my current account.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Too many questions to ask and the end result will be "talk to a good whole market broker" anyway, so I'm going to stay out as I'm too busy today.

    Sorry.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • Ok thanks can anyone else help please?
  • hcb42
    hcb42 Posts: 5,962 Forumite
    You will need a deposit and you will need to pay all costs i.e. surveys, legals etc...pay down those cards and get saving is the only way
  • The cards aren't as bad as the signature now, however they are business costs and won't be paid off - I don't think so anyway.

    My colleague at work has paid his mortgage with 20K of interest free credit card debt and just purchased another property and land, so I'm concerned that I'm worrying over nothing and if I never make the jump I never will.
  • Just wanted to note I may have the deposit by April, but I'd rather have that as back up, so my question really is if I borrow money now - will that be okay, I add the details of repayments to the calculator and it says fine! However I'm unsure if this is true... :-/
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