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Those recently applied for a mortgage what was your current debt if any?

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Hi guys

For those of you who have just applied for a mortgage what current outstanding debt did you have eg credit cards and loans etc?

Next year we want to get a mortgage my husband earns 36k and I earn 11k part time as we have a 2 year old. We have debt of 7k and was wondering how much of an impact this will have.

Thanks

Comments

  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    The less debt the better, but for those with debt it will come down to affordability on your monthly outgoings and any CCJ's/ Defaults.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • marksoton
    marksoton Posts: 17,516 Forumite
    I earn similar to your husband, 2 dependants and had 5K of debt.

    Nationwide made it a condition of the mortgage offer that this was paid off. It's only a 74K mortgage.

    Just goes to show each case is different and i wouldn't base any assumptions on the experience of others.
  • Jon_B_2
    Jon_B_2 Posts: 832 Forumite
    500 Posts
    All depends how much over your salary you are looking to borrow.

    For the record, when we applied for a £205k mortgage with Nationwide - we had £3.5k of debt with a combined salary of £63k. This back in May.
  • Thanks all

    I have done Santander, natwest and barclays calculators and put salaries and debt in and amounts we want to loan (house value is 125 and we have 10% deposit).

    They all came out saying we could loan quite a bit more so hoping this is a good indicator
  • I have just got a mortgage with Natwest with 15k of outstanding debt, remember not all debt is bad debt!!
  • Alarae
    Alarae Posts: 356 Forumite
    Part of the Furniture 100 Posts Debt-free and Proud!
    I knew when we applied for our mortgage with Nationwide that we would be pushing it for affordability, especially when we had a gifted deposit.

    I had taken out a 0% credit card for my sister so that she could pay off the debt without incurring interest. This had about £1,400 on so I paid that off, as well as £1,000 from my student overdraft (it was 0% so it was in an interest bearing account to make money off the bank's money). I had another £500 or so on another 0% card for my car insurance aa I opted to pay annually as there were no fees for credit card payments

    All in all I had about £3,000 in debt but I had the money set aside to repay. We applied for a £205,000 mortgage on a 44k joint salary. It probably helped that the gifted deposit was just over 20% so we had a decent LTV.
  • GwylimT
    GwylimT Posts: 6,530 Forumite
    1,000 Posts Combo Breaker
    We were successful in gaining a mortgage in May, we had £800 on a credit card at the time, our mortgage is 20% of our properties value.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    (house value is 125 and we have 10% deposit).

    Depends how lenders view £12.5k deposit against £7k of debt. As your net savings are £5.5k.

    Lenders will also know if you have 0% cards and are purely paying the minimum.

    Are you comfortable with having £7k of debt? That's a question only you can answer.
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