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Mortgage advice on help to buy 2
Good_Citizen
Posts: 2 Newbie
Dear Money savers,
This is my first post on this wonderful forum, so please bear with me
. I am planning on buying a house using the new help to buy mortgage guarantee scheme and need some advice.
A bit of background:
Purchase value of new house: 300K. I presently have 28K in investments. 15k in ISA and 13K in fixed-term funds thats due to mature in 18 months. I also have credit card debt of 14K at 0% rate until 2015. I have a spotless credit history and am under 30% credit utilisation. Our annual combine income is 72K and have a 3 year old kid.
Here is my question:
Based on my profile, do I need to break my investment (which in turn incurs a penalty) to pay up my credit card in order to qualify for the 5% help to buy mortgage. Or will it be okay to keep the CC debt and apply for the mortgage with the 5% deposit using the cash from my ISA? If possible I would like to keep the fixed-term funds. However on the other hand, I am worried that Id be perceived as a high risk candidate with the CC debt. I have never applied for a mortgage before and am completely at loss. Any help would be hugely appreciated.
Thanks.
This is my first post on this wonderful forum, so please bear with me
. I am planning on buying a house using the new help to buy mortgage guarantee scheme and need some advice.A bit of background:
Purchase value of new house: 300K. I presently have 28K in investments. 15k in ISA and 13K in fixed-term funds thats due to mature in 18 months. I also have credit card debt of 14K at 0% rate until 2015. I have a spotless credit history and am under 30% credit utilisation. Our annual combine income is 72K and have a 3 year old kid.
Here is my question:
Based on my profile, do I need to break my investment (which in turn incurs a penalty) to pay up my credit card in order to qualify for the 5% help to buy mortgage. Or will it be okay to keep the CC debt and apply for the mortgage with the 5% deposit using the cash from my ISA? If possible I would like to keep the fixed-term funds. However on the other hand, I am worried that Id be perceived as a high risk candidate with the CC debt. I have never applied for a mortgage before and am completely at loss. Any help would be hugely appreciated.
Thanks.
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