Advice please!! Want to apply for mortgage at end of the year!

Jade1988

Hi everyone

I just wanted a bit of advice please, I am looking to apply for a mortgage the end of this year. I am on a salary of £25000 per annum and I have the following debt outstanding:

Over draft £3500 (I live in this)
Very account £3800
Credit card £600

In an ideal world I would pay all this off before applying for a mortgage however this isn't going to be possible. What out of the 3 should take priority in clearing?

I don't have savings for a deposit but my partner is currently in the army so will be paying for the deposit on his return, as I know some responses would be to clear the debt with savings but obviously I can't do that....

Thanks everyone x

Thrugelmir

Suggest you pay a visit to the Debt Free Wannbe board. As getting control of your finances has to be your priority before even considering applying for a mortgage. The "living in the overdraft" syndrome will be very apparent to any lender when your application is credit checked.

mrginge

Jade1988 wrote: »

Hi everyone

I just wanted a bit of advice please, I am looking to apply for a mortgage the end of this year. I am on a salary of £25000 per annum and I have the following debt outstanding:

Over draft £3500 (I live in this)
Very account £3800
Credit card £600

In an ideal world I would pay all this off before applying for a mortgage however this isn't going to be possible. What out of the 3 should take priority in clearing?

I don't have savings for a deposit but my partner is currently in the army so will be paying for the deposit on his return, as I know some responses would be to clear the debt with savings but obviously I can't do that....

Thanks everyone x

Hmm. You owe a third of your annual salary on (what is supposed to be) short term debt....

Generally you should pay off the highest interest one first, but living in a 3k+ overdraft is going to look pretty bad.

Having said that, 4k on a Very account looks like some counselling is actually required. And i am not joking.

Jade1988

Yes I know the very account is bad, it has been for big purchases though which I know isn't an excuse but still...

So how long would I need to be debt free for before applying for a mortgage?

Would it be better to get a loan to pay off everything and then just pay that or will they see that as being just as bad?