Mortgage/Debt Advice

eclipse2015

Problem resolved

kingstreet

Enter your details in the online affordability calculators of the lenders you are likely to want to approach. See if they will lend what you need.

eclipse2015

Thanks, I have done that and it seems to be fine. The only concern I have is that I get refused anyway because I'm too high risk with my current debt. My credit rating is 596 on Noddle, which isn't great.

libf

That number means nothing. Lenders score to their own parameters using the contents of the report. If you're worried then your best bet is to use a broker who knows the lender's criteria.

kingstreet

Unless your unsecured credit is over half your salary, no-one is going to be too bothered. Card balance is used for affordability, usually 5% is taken and the monthly loan payment, not the amount outstanding.

If you're concerned, speak to a broker and get some reassurance. Ignore "credit scores" as meaningless. Get all three credit files and stick them in front of a broker.

eclipse2015

Thanks so much for your advice, you have put my mind at rest, I've been having sleepless nights worrying, it's good to hear it's not the be all and end all. Thank goodness for Mortgage Brokers!

[Deleted User]

I would think very carefully before I took out a mortgage with someone who was not willing to help me out with my debt by using a mere 10% of their savings. I'd give my husband my last 50p if it would help him out and vice versa- we agreed for better or for worse when we married, after all.

Thrugelmir

Is there any reason why the debt is all in your name?

Why won't your husband clear your debts?

Is all the deposit tied up in an existing property?

With £90k of annual income why are you only making minimum payments every month?

eclipse2015

I see where you are coming from habssac, but what I didn't mention is that all of the £180,000 deposit will come from his equity in the house he is selling at the moment, so by time he gets that money we would have already had to apply for our mortgage, so it wouldn't make any difference to our application anyway.
It's never something we have discussed, and maybe he would pay it, but I am probably too proud to ask too! The debt doesn't worry me, as I can pay if off with bonuses and it's low interest, it's just the mortgage rejection that I am worried about as I'm not in a position to pay it off before we apply!

eclipse2015

Hi Thurugelmir,

Is there any reason why the debt is all in your name?
It's my debt, nothing to do with him. He's very good with his money and doesn't believe in credit, I on the other-hand am not! We weren't planning on buying a house, otherwise I would have been more careful, it's all happened very quickly and we've accidentally stumbled across our dream house so have decided to try and go ahead with it.

Why won't your husband clear your debts?
It wouldn't make any difference to the mortgage application as he will only have access to the money once the house we currently live in gets sold, and it would be too late by then.

Is all the deposit tied up in an existing property?
Yes 100% of it, his home. I would be a first time buyer

With £90k of annual income why are you only making minimum payments every month?
I am paying more each month however just put that down as that's the minimum (paid off £1,000 on the credit card last month with a bonus)