What would you do?

nizzard

I'm in the process of applying for a mortgage with my husband, not sure what our chances are so heres the deal...

we are currently renting a flat from parents and looking to sell up, potentially giving us 68k equity for deposit snd moving costs ( half of it is being given to us)
i already have a mortgage on a 1bed flat, renting out the property on a repayment mortgage with possible equity of 40k if i sell it
husband is self employed earning around 32k (from last 8 years)
im on maternity leave but going back part time with a annual salary of 14k
got a car loan and 3 credit cards between us equating to 11k, credit cards on 0%
husband declared self bankrupt over 8 years ago
our credit files are both good currently but need tidying up as some missing info, so that's as far as i have got

what do u think our chances are on the above for a mortgage around 180k with a 50k deposit (pay off debts first). most 2 or 3 beds in the area we are looking at are 200 to 250k (cheaper area than where we currently are)

if you think its a no no or we go as far to be declined, would you sell the other property giving us extra 40k so a total of around 90k? or are we better off renting until gawd knows when? our rent is only 660 a month

is a mortgage the be all and end all?

so much to think about!

also we are in and out of our overdraft a lot but never at the max, will that completely go against us as welll as all else? please help? maybe the time isnt right who knows!!

nizzard

no advice then? :-(

Thrugelmir

If you can sort out your debts. Then the mortgage appears totally manageable.

Is the flat you let profitable?

LottieLou

I would make sure you don't dip into the overdraft for living costs. I would clear it if any balance is outstanding and show the banks your income vs outgoings is manageable without using borrowed money from an overdraft.

I would also make sure everything on you're credit file is "tidied up" as much as you can then I would be talking to an independent broker.

If the flat you let is profetable to you, I would try as much as possible to keep it if you can for now.

roje

Using your authorised overdraft might not be an issue, I'm in mine every month and read lots of horror stories online about banks refusing mortgages based on this. It wasn't even questioned, and my mortgage is with my own bank so they are aware of the fact I've been in and out of it since the beginning of time

nizzard

thanks lottielou its pretty much what i need to do yes! thanks for your advice!