Can I get a mortgage even though I have a loan?

camcw

Hi,

I'm hoping for some advice about whether or not I will be able to get a mortgage as a first time buyer.

Two and a half years ago I made the mistake of taking out a £15k loan to help out my boyfriend at the time who had got himself into a financial mess because of a gambling addiction. We split up soon after and I am now with a new partner. The loan repayments are made monthly from my account and have never been late, and my ex repays the money into my account. There is around £8k left to pay.

My new partner and I would now like to buy a house and have 10% deposit saved. We both have good jobs and can afford the mortgage repayments - although I understand that banks will take the loan repayments into account when looking at my disposable income even though my ex still gives me the money each month.

My question is, will the banks consider us for a mortgage with this sort of loan on my file? There is 2.5years left on the loan, I can't afford to pay it off outright so it would mean waiting a long time to get on the property ladder if the answer is no.

Any thoughts would be much appreciated.

Thanks
Cam

andyfromotley

Could your ex see if he could now get a loan to take it on himself now that it is considerably less?

If not the loan in itself wont be a deal breaker, but it will obviously impact on your affordability so if affordability is tight it could be a problem. Might be worth running it past a broker who will have a look at your whole situation, and know which lenders will be less worried about this.

camcw

I've tried to get my ex to get a loan to pay off the one in my name as that was the original agreement, but to cut a long story short it doesn't look like it's going to happen.

Thank you for the advice regarding using a broker, I will certainly look in to that.

Thanks
Cam

ViolaLass

Can't you pay it off using your deposit then put your ex's money towards a new deposit?

lufc7

This looks a little like touting for business and not purely advisory. I do believe thus is a little naughty

camcw

ViolaLass,

There's two problems with that - firstly the deposit money is joint savings with my new partner and actually the majority is his - so it wouldn't feel right to use it to pay off what I see as my ex's loan. Secondly, it would be 2.5 years before my ex would have repaid us if we did that, which would delay us substantially in getting on the property ladder. (I appreciate that it's very much my fault for being so naive in the first place - lesson well and truly learned!)

Jess thank you for your offer of help and it does look like speaking to a broker should be our next step - however we have had a couple of local firms recommended to us by friends.

Thanks
Cam

ViolaLass

Blueberry_Mortgages wrote: »

Lufc I would love to say I am touting however Cam has requested advice in their post. Based on industry regulations certain information must be gathered in a fact find before offering any advice and/or recommendations. I am merely offering cam some free advice on their situation should they feel they need it from a mortgage adviser. All info sent via forums is not advice and can only be taken as information.

Advice = "Get a whole of market broker."

Touting = "Hire me."

You did the latter.

OP, I see your point.

kingstreet

Blueberry_Mortgages wrote: »

Lufc I would love to say I am touting however Cam has requested advice in their post. Based on industry regulations certain information must be gathered in a fact find before offering any advice and/or recommendations. I am merely offering cam some free advice on their situation should they feel they need it from a mortgage adviser. All info sent via forums is not advice and can only be taken as information.

You might like to have a read of this;-

https://forums.moneysavingexpert.com/discussion/325378

and if you feel you want to be a member of the broker gang on here, re-register (you've now been banned, that's what PPR means) and follow the rules.

All the best, Ian.

anselld

lufc7 wrote: »

This looks a little like touting for business and not purely advisory. I do believe thus is a little naughty

Suggest you delete the quoted text if you don't want the spam to have a second life!

lufc7

anselld wrote: »

Suggest you delete the quoted text if you don't want the spam to have a second life!

Done glad it wasn't just me not understanding the rules correctly. You always see the pro's on here being careful not to blatantly advertise or advocate themselves whilst the newcomer was rather blatant. Oh well hopefully they will re read the rules and if need be rejoin and provide helpful insights if they are able like many others do.:T

kingstreet

It would be good to get some new broker blood on the forum.

I must confess I'm finding it difficult to keep up with the day job and give as much time as I used to on here...

I've taken three new enquiries today, so far.