First Time Buyers Advice

james_lawless

Hello,

My girlfriend and I are starting out on the road towards buying our first place. We are being gifted the deposit and we're looking at buying somewhere worth around £140,000 with a 10% deposit.

Our salaries are:
1) £38,500
2) 22,000

I have just under £16000 worth of credit card debt (and working hard to reduce this every month!). I'm wondering how much of an impact my youthful reckless spending will have on a mortgage application and how accurate the calculators are in forecasting what will be leant? Basically, will providers lend the £125,000 we’d be asking for?

Thanks!

lavalamp1

Rule of thumb when applying for mortgages - Clear your debts before applying or have debts that can be easily paid off each month. Should you have any defaults, late payments etc then this will affect your ability to obtain a mortgage.

james_lawless

Thanks Lava,

I'm comfortable with making the repayments each month, infact I overpay. I just don't want to wait years, especially when paying rent on a place!

lavalamp1

Best to see a bank and see what they offer you in terms of affordability. You wont be able to borrow up to the maximum with the debt you have accumulated.

james_lawless

lavalamp1 wrote: »

Best to see a bank and see what they offer you in terms of affordability. You wont be able to borrow up to the maximum with the debt you have accumulated.

I was hoping a mortgage advisor on here might be able to offer some advice on how realistic the figures look before I went to a bank...

somethingcorporate

Have you tried an online mortgage calculator?

That's a lot of debt on your salary so I'd expect it to count pretty harshly against you.

james_lawless

somethingcorporate wrote: »

Have you tried an online mortgage calculator?

That's a lot of debt on your salary so I'd expect it to count pretty harshly against you.

I've tried several of the affordability calculators and all of them suggest we'd be eligible for significantly more than we'll want or need. How reliable are these?

I appreciate I have a relatively large credit-card debt, hence my question posted here. I was hoping a resident mortgage advisor might be able to offer experience of dealing with someone in a similar situation.