Do I have a chance? FTB/ Debt - Help to Buy

pcgtron

You spent 26k on a wedding out of money you didn't have saved but got into debt for.

cacpearce

pcgtron - yes we did, only live once! Wanted a day to remember and it was a great day - the thing is we are not people who don't repay our debts... even plan to overpay a mortgage if we manage to get one!

Dave_Ham

Ok, subject to the detail you will get a mortgage (other things being equal)


Whether you should get one now is down to you both and some formal financial advice. The immediate concern would be any children further down the line and the impact on your financial situation - apologies if you kids already and did not spot


Assuming you are young, you can also look at a longer term.


Would be prudent to have a run up on the debt prior to moving in. Sell anything you can, cut down on the holiday/s/luxuries and put a good couple of months well over paying the cards or that level of debt will be weight.


If you will not pay down quickly, consider converting the debt to 0% deals and/or an unsecured loan.


All the best

dgtazzman

There is already one huge flaw in your plan, Halifax will only allow 1 % in financial incentives, so they won't accept that the builders are paying and legal fees and stamp duty for you and will be picked up on on a full application, been said on here by mortgage advisers many times.

You have good incomes (we got approved for a 200k house on a 52k joint income 5 months ago) , but there are so many things ringing alarm bells: large debt, gifted deposit, relying on other parties to pay the additional costs,... I suspect quite a few questions to be raised on full application.

I would see an IFA with your financial details and credit files before proceeding with a full application.

As for the bubble popping and house prices crashing, been said so many times and never really happened. There is nothing artificial about a shortage of properties in the country.

cacpearce

Dave Ham - thanks for your reply.

We are both young and have at least 40 years work in front of us - wow thats a dreaded thought!

No kids as of yet and wont be for a while - maternity packages/ paternity are really good where we work and can show this.

Have made sure all I have is going on debt at the moment - obviously not the deposit but we are cutting right back!


One thing that does worry me is that the credit files will not be updated quickly and won't show the current up to date level of debt - we are looking to complete at end of June.

We are using an independent broker and she has said Halifax might be a good way to go - thinking about fixing for 5 years at higher rate to show the lender stablity - especially if they are stress testing?

cacpearce

dgtazzman - thanks for the heads up - will make sure I get the additional costs saved up this month then and have that on top of my deposit.

Its gifted as in inheritance and a bit of my bonus this year.

dgtazzman

Actually, looking at your take home, it is identical to ours (wife doesn't earn enough to pay tax and I'm exempt of income tax due to the nature of my job).

R_P_W

cacpearce wrote: »

brit1234 - thats the plan if the mortgage doesn't come off, only means a 12 month delay in getting on the ladder so not a big deal.

Just trying my luck as this new build I found is a good deal. The thing is though £26k is not a lot to pay in the grand scheme of things and was used to pay for our wedding.

You seem to have a very casual attitude towards your 26k of debt!

cacpearce

R P W - yes because I can afford it - sorry that is not trying to be snotty its just that I take full responsibility for it and know that it is under control - it might not seem that way at the min to people on this forum but we jumped the gun a bit on buying a house!

If this mortgage doesn't work out we will try again in a few months

kingstreet

cacpearce wrote: »

thinking about fixing for 5 years at higher rate to show the lender stablity - especially if they are stress testing?

Not an option. The affordable housing/HTB - EL products are two year fixed rates only.