Desperate for mortgage advice

collymore18

Hi there, looking for some mortgage advice. Me and my fianc! are getting married next year and would love to own our own home before the wedding.


Our situation is we both work full time and both earn 20k a year. My fianc!'s credit situation is very simple, she has a excellent credit score with one credit card that she pays off in full each month. I however have 2 credit cards that are maxed out, the limts on them are £5800 and £7000, my credit score is good at 890 and I have regularly made payments on time. Our parents have kindly offered to give us money for a deposit so we should have around £10,000 for that.


My question is will mortgage companies be willing to offer us a mortgage? we would like to get a mortgage by this time next year but I don't know how much of a dent ill be able to make into my outstanding credit card debt. I have read on this site that lenders would prefer to have outstanding balances below 50% of the limt.


Would be grateful for any advice

ACG

£12,800 debt on £40k income is going to have a pretty big impact on what you can lend.

There will be lenders, but I think a lot of lenders will seriously limit how much you can lend.

That being said, I have just gone on 1 lenders website (as I was already on it) 2 apps, no kids, £12k cc balance over 25 years and it came back at £170k.

I do not think many lenders will lend anywhere near that, so I think it was more luck than judgement but I think I would make as big a dent into those balances as you can. It will look better to any lenders when you make an application.

collymore18

Thanks for response ACG, would you say I have to at least half that amount? Or more? we are not looking for anywhere near that amount would be looking for around £90k

ACG

Forget the half of limits, some lenders would want to see that others do not mind.

If you are looking for £90k then I think you will have a few more options whether you reduce the balances or not, but the lower the balances the better chance of passing the scoring I would say.

collymore18

well I will be doing my best to eat into those balances over next few months, cheers ACG

Jon_B_2

I think you should head over to the debt free wannabe board. £12k of credit card debt on a combined wage of only £40k is not a good situation to be in and I wouldn't personally be thinking of buying a house with that kind of exposure yet.

DandelionPatrol

Jon_B wrote: »

I think you should head over to the debt free wannabe board. £12k of credit card debt on a combined wage of only £40k is not a good situation to be in and I wouldn't personally be thinking of buying a house with that kind of exposure yet.

I too think you should head over to the debt free wannabe board. £13k of credit card debt on a personal wage of only £20k is approaching a perilous level. 6 months income is about the limit for unsecured debt.

Bear in mind that you have a wedding to pay for, so your chances of making in roads into this debt are slim. I think you have choices to make - you might not be able to have it all.