Would we even get a mortgage?

midlander81

Hi,


We are in a situation where we will almost certainly have to move house at some point in the next 6 months. I cannot give too many details on here as it's quite a specific set of circumstances and I don't want to be identified. The reasons are out of our blame and control.


We currently own our own home with a mortgage of 80K. House worth £145K and we would not be looking for something much more expensive so out LTV would be ok. Now, here's the problem....


We are currently on a debt free journey if we moved in 6 months then we would still be owing around 30K of unsecured debt. We are clearing this debt quickly and we can afford the payments as we earn 75k combined. We have no CCJ's or defaults but we do have a couple of historic late payments ( never more than 1 month)


Would we get a mortgage or would our level of debt make it a non starter?? Would we have to go sub prime??


As I have said, it looks likely that we will have to move so it may be a case of renting although I really want to stay on the property ladder if possible.

Thrugelmir

Would you be looking to borrow more if you moved?

midlander81

Hi,


Not necessarily although having the option to increase out mortgage slightly may help. When we are debt free we will be able to increase our mortgage as we are currently paying over 1K a month on debts. ( our min payments are not this high but we are choosing to overpay to clear them more quickly). At the moment our focus is simply to move. Also, I am 34 and wife 35. Is a 25 year term out of the question as we are older? Thanks

amnblog

I think you are worrying about problems that should not prohibit lending just reduce your options.

midlander81

Thanks amnblog. I was concerned that they would see our level of debt and immediately form a judgement that we were not good borrowers! Is it usual to apply for a mortgage with some degree of unsecured debt?