Use capital to pay debt to get access to lower rates?

robjl

CLAPTON wrote: »

what sort of mortgage amount do you want
what is your salary

I'm looking at about £150000 my salary is £40k which covers my outgoings and then bonuses are £5000 per qtr based on performance, this is where the 10k per year in savings would come from

Gaz83

You have outgoings of £40K?

robjl

Gaz83 wrote: »

You have outgoings of £40K?

After tax £2500 per month, and that's total household as wife doesn't work,

Gaz83

robjl wrote: »

After tax £2500 per month, and that's total household as wife doesn't work,

I assume you mean your after-tax salary is £2,500 per month and this covers your outgoings. Again, same question - you have outgoings of £2,500 per month?

robjl

Gaz83 wrote: »

I assume you mean your after-tax salary is £2,500 per month and this covers your outgoings. Again, same question - you have outgoings of £2,500 per month?

Does it matter? I can afford it and I've still been able to put aside a little every month! My outgoing are not the question... I am asking the best way to use what I have,

ViolaLass

You are a net £9k in debt which doesn't quite match your 'I can afford it' stance.

[Deleted User]

robjl wrote: »

Does it matter? I can afford it and I've still been able to put aside a little every month! My outgoing are not the question... I am asking the best way to use what I have,

Due to recent changes in mortgage rules affordability isn't the cake walk it was in a time gone by. If you're spending 100% of your income and have significant debts a mortgage at ~4x your salary is not going to be attainable.

You need to put the mortgage idea on hold and spend a couple of years getting yourself back on track, right now you're about £40,000 away from where you need to be (£20k up vs. £20k down).

robjl

I came here for advice, not a character assassination! I have debt like 80% of people - get over it, please can I ask you only contribute if you have some decent advice,

Thank you to those so far who have given me sensible answers.

robjl

citricsquid wrote: »

Due to recent changes in mortgage rules affordability isn't the cake walk it was in a time gone by. If you're spending 100% of your income and have significant debts a mortgage at ~4x your salary is not going to be attainable.

You need to put the mortgage idea on hold and spend a couple of years getting yourself back on track, right now you're about £40,000 away from where you need to be (£20k up vs. £20k down).

Agreed, but contained within my outgoings is £850 rent, so it's one in one out, plus I get £20000 a year in bonuses in addition, which allows me to put savings aside

Gaz83

No-one's giving you a character assassination. Your figures don't add up. No self-respecting bank is going to give you a mortgage in your current situation. You need to spend a bit of time (it should only take six months if your bonus is as you say) getting out of debt and then some more time building up savings before getting a mortgage.