Should I bother trying for a mortgage?

Taucher

Me and my wife are expecting our first baby on September 1st. My credit files are slightly above average (Experian, Equifax). I have about £4800 outstanding debts, some of that on a very high interest credit card (35%). I have twice applied for credit cards with lower interest - both times I have been refused but the applications have shown up on my file and reduced the score (annoying because trying to get a lower interest rate is a proactive, sensible financial decision - isn't it?).

Because of my applciation refusals, I believe I might be refused a mortgage too. But I'd like to know if anyone thinks otherwise. Details below. This is a joint applciation (me and wife).

Joint salary: £43,000 per annum
Deposit: £100,000
Savings: £2000 (for baby things)

My debt: £4,800
My available credit: £2000 (remainder of CC limit)

Wife's debt: £0
Wife's available credit: £4000 (cc - she doesnt use it)

Should we attempt to go for a mortgage? For me, it seems like we should be good candidates but I get refused for every financial thing I apply for.

Also, my wife's earnings will change for the maternity period so would it be a good idea to apply for a mortgage before the baby is born?

Thanks for reading!

T

Thrugelmir

Make more sense to use your savings to reduce your debt.

Have you tried approaching your bank for a personal loan to reduce the interest you are paying on the unsecured debt?

From your signature appears until recently you've had an overdraft as well. So it's your recent credit history that's possibly holding you back.

Taucher

Thanks for your reply.

When I say I have £100, 000 for a deposit I dont actually have it right now. so I cannot use it to pay off my debts, unfortunately.

Half of my debt of £4, 800 is on two credit cards belonging to different companies and not my bank. I did speak to my bank before but I have a loan with them already and they said they wouldn't extend my loan to pay off my credit cards. I have failed in every attempt to get credit over the past year and am wary of applying again.

Yes I have recently cleared my overdraft of £800. My Experian credit file (the only one I have checked) had this (it had both my currant accounts - the £800 over drawn one and the one I use that is never overdrawn) but it no longer does! My currant accounts have completely dissapeared from my file.

d70cw6

ah. ethereal assoonasmyparentskeelover deposits. the best kind :P