Help to Buy and Credit card debt

EmmaLI1986

Hi,

I was wondering if anyone can give my partner and I any advice on mortgages and the help to buy scheme.

we have found a property we like at a market value of £149500. we want to purchase with a 20% government loan and therefore we need to raise 119600 inclusive of our 5% deposit.

My partner has no credit card debt but has car finance. I however have close to 7500 of credit card debt.

we have been told it would be really difficult to get a help to buy mortgage even though we both earn reasonable salaries.

can anyone recommend a lender who may consider us under the help to buy acheme?

ACG

It doesnt matter how much debt you have as such.
It comes down to affordability. Put your figures in to lenders calculators - if it fits, it should be fine.

If you have any doubts or if you want the help and support - speak to a broker.

Thrugelmir

EmmaLI1986 wrote: »

I however have close to 7500 of credit card debt.

Sounds as if your deposit is borrowed money. So if you are looking to buy a property. Now is the time to get your personal finances into order. Cutback on your expenditure and start paying down your debt.

kingstreet

EmmaLI1986 wrote: »

Hi,

I was wondering if anyone can give my partner and I any advice on mortgages and the help to buy scheme.

we have found a property we like at a market value of £149500. we want to purchase with a 20% government loan and therefore we need to raise 119600 inclusive of our 5% deposit.

My partner has no credit card debt but has car finance. I however have close to 7500 of credit card debt.

we have been told it would be really difficult to get a help to buy mortgage even though we both earn reasonable salaries.

can anyone recommend a lender who may consider us under the help to buy acheme?

Newbuild?

If so, you need to pass the Government's calculator first and it is less generous than a lender's. It uses only upto 4.5x income, a household debt to income ratio of 45% and a mortgage rate of 4.8%.

Some mortgage lenders offer over 5x income.

You may be able to get the mortgage, but the Equity Loan is not available on the data you provided.

If not newbuild, there is no 20% loan and you are looking at the wrong HTB scheme. You want Mortgage Guarantee, not Equity Loan. Then it's all down to the lender calculator but you will be looking for a £142,025 mortgage.