Mortgage Advice

[Deleted User]

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

Thrugelmir

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.

[Deleted User]

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

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.

[Deleted User]

Ok thanks can anyone else help please?

hcb42

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

[Deleted User]

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.

[Deleted User]

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... :-/