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First Time Buyers and Savers in need of some honest help!
cleol56
Posts: 36 Forumite
Good day all,
I read these forums now on a daily basis and decided it was time for me to bite the bullet and post something so here goes!
Me and my partner are saving for a house deposit. We are hoping to go down the help to buy Mortgage Guarantee Scheme (not the equity loan). By May next year we are aiming to have £15,000 saved, hopefully allowing us to purchase a property for between £280,000 and £300,000 (we are in our mid 30's). We have also put aside the money for the stamp duty too so we have this covered.
We both have good credit scores and our files are pretty clean, albeit my partner has a default from 2010 but other than that, all is good by the looks of things.
He has £900 debt but I have more. £4000 on a credit card which is at 0% interest until August 2015 so should be nearly paid off by the time we apply. And I also have a car on finance with, by the time we apply, 2 years left to go. Remaining amount to pay off by then would be about £4,000.
We also both decided to get a joint account for our finances and leave our current accounts behind. HOWEVER, we both have overdrafts on our current accounts which we are now not using. I have £1000 and my partner has £900. We are both just below the limit on the overdrafts and are planning on paying off a little per month.
My questions really are:
Will remaining Credit Card debt when applying for a mortgage, along with car finance hinder our chances of getting accepted?
Will our overdrafts on accounts that aren't being used need to be cleared by the time we apply?
If I still have a little credit card debt when we apply, would it be better to pay off the credit card with the overdraft? Does credit card debt look worse or better than overdraft debt on an unused account?
Does anyone have any advice for us on applying for a property via the help to buy Mortgage Guarantee Scheme?
Our combined salaries are just shy of £80,000 per year if that helps.
I really hope you can help us get on the right track to clearing the right debts in the right order so we are successful next year when we are ready to buy.
Thanks!
I read these forums now on a daily basis and decided it was time for me to bite the bullet and post something so here goes!
Me and my partner are saving for a house deposit. We are hoping to go down the help to buy Mortgage Guarantee Scheme (not the equity loan). By May next year we are aiming to have £15,000 saved, hopefully allowing us to purchase a property for between £280,000 and £300,000 (we are in our mid 30's). We have also put aside the money for the stamp duty too so we have this covered.
We both have good credit scores and our files are pretty clean, albeit my partner has a default from 2010 but other than that, all is good by the looks of things.
He has £900 debt but I have more. £4000 on a credit card which is at 0% interest until August 2015 so should be nearly paid off by the time we apply. And I also have a car on finance with, by the time we apply, 2 years left to go. Remaining amount to pay off by then would be about £4,000.
We also both decided to get a joint account for our finances and leave our current accounts behind. HOWEVER, we both have overdrafts on our current accounts which we are now not using. I have £1000 and my partner has £900. We are both just below the limit on the overdrafts and are planning on paying off a little per month.
My questions really are:
Will remaining Credit Card debt when applying for a mortgage, along with car finance hinder our chances of getting accepted?
Will our overdrafts on accounts that aren't being used need to be cleared by the time we apply?
If I still have a little credit card debt when we apply, would it be better to pay off the credit card with the overdraft? Does credit card debt look worse or better than overdraft debt on an unused account?
Does anyone have any advice for us on applying for a property via the help to buy Mortgage Guarantee Scheme?
Our combined salaries are just shy of £80,000 per year if that helps.
I really hope you can help us get on the right track to clearing the right debts in the right order so we are successful next year when we are ready to buy.
Thanks!
0
Comments
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Card debt and loan payments will influence how much you can borrow, not if you can borrow. Lenders take the monthly payments on a loan and upto 5% of a card balance, regardless of interest rate.
No. Should make no difference.
No difference.
HTB - MG at 95% will require a clean credit history. A visible default will mean a decline by some lenders.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.0
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