5000 More mortgage doposit or repay the credit card loan

mailsmsi

Hello all.
Think about a situation.

Main applicant :salary 33000


If main applicant have credit card loan of 5000 which if he do not pay and use as a additional deposit ,how much he can borrow.

Say he has 10,000 and repay the credit card loan
or
He can use 15000 as a deposit for mortgage ?

In which case ,he get bigger amount of mortgage.

Roughly how much he can barrow?

Second applicant get govt benefit(carer & DLA) of 5000.
.Does this applicant should included in mortgage form?

libf

Max borrowing is generally 4.5x salary, so £148,500. But usually outstanding debts will be removed from that figure so that total debt is £148,500. So in your situation the max mortgage would be £143,500 to account for the credit card.

Also, to achieve £143,500 you are likely to need at least a 10% deposit, so £14,350. And then of course you need the additional money for stamp duty and conveyancing and any mortgage fees...

mailsmsi

Many thanks for the reply.
Do you have any comment about second applicant ?
Second applicant get govt benefit(carer & DLA) of 5000.
.Does this applicant should included in mortgage form?

kingstreet

Why not speak to an independent mortgage broker and get this done properly?

You'll get accurate affordability and accurate information about which lenders will include what.

kingstreet

libf wrote: »

Max borrowing is generally 4.5x salary, so £148,500. But usually outstanding debts will be removed from that figure so that total debt is £148,500. So in your situation the max mortgage would be £143,500 to account for the credit card

You've never deducted the debt value from the max borrowing.

In the days of income multiples, you take the annual payments on a loan, or 5% of the card balance annualised off the incomes before you multiplied them.