Do we go jointly or single in our mortgage application??

bkdizzy

Hi
I am looking for advise on whether me and my partner should make a joint or single mortgage application....
Currently my house is on the market and I hope to have £10,000 in equity after the sale, I have approx £10,000 in debt...... My partner would be classified as a first time buyer and has no debt. We are looking for advice on what to do....
1. We pay off all the debt rent and save up again for a deposit for a new mortgage?
2. Pay off half the debt and use the rest towards a 5% deposit on the help to buy and he goes for a mortgage on his own.
3.We go for a joint mortgage with £10,000 and combine the debt?
4.He goes for a single mortgage with a £10,000 deposit?
Combined salary is £40,000 just want to know if anyone out there could give us some help on the best direction to go?
;)

ACG

He cant apply for a mortgage in his own name using your deposit - so that rules out 2 and 4.
You can either do a joint application with some or all of the equity or
A sole application in your name only using some or all of the equity.

As to which will depend on the numbers and your personal preference.

bkdizzy

That's great thank you so much for the advise, didn't realise he wasn't able to use my deposit.
Do you know roughly how much disposable income we would need % wise at the end of each month to stand more of a chance for a successful application?

ACG

varies from lender to lender.
Most will say they will lend up to 4.5x income. But if you have a football team worth of kids and £10k debt that will probably end up being less.

Have a mess around on the lenders affordability calculators, you will be surprised at how different they can be.

bkdizzy

Not a football team but 3 between us. I have made an appointment for a financial advisor to come and speak to us next week. We are in the meantime working hard to pay off our debts quicker and we don't want a huge mortgage £120k max really as we are looking to make regular overpayments.

Thrugelmir

Perhaps best to try and tackle the existing issues first. As difficult as that might be in the short term. Is the current mortgage repayment or interest only?

bkdizzy

interest only...only because it is with my ex partner who's name is still on the mortgage so didn't want to pay off any of the balance, I did credit an extra £3000 to the mortgage in the past few years though and I have paid it on my own for the past 5 years.