First TIme Buyers - a bit of a pickle

tsumtsumfan

We’re in a bit of a sticky situation and could do with a little advice.
Last year, my husband’s parents told us that they wanted to help us to get on the property ladder, and so were willing to give us £75k for a house deposit. My husband at the time had just started his business and had a part time job too to help with our income, so we initially planned on applying for a mortgage under my name as I am a full time teacher.
We both have credit card debts and loans, but have since cleared one of our loans and have started looking at mortgages. Applying with just my salary we could look at some properties, but not borrow enough for some of the ones we have been looking at, now get a joint mortgage which would be what we’d like ideally. We spoke with a financial advisor, who advised us to use some of the 75k to pay off our credit card debt, and we could then borrow more as a mortgage and widen our options.
In speaking to my husband’s parents about the advice we received, they wanted to discuss it with their financial advisor, who they have since spoken to. He suggested to them that getting a joint mortgage shouldn’t be a problem, but it contradicts advice we’ve been given elsewhere, and it also feels like they haven’t really discussed the issue that they were going to discuss which was whether it was a good idea to pay off the debt.
We’ve now found a property we really like and are considering making an offer, but don’t really know how to proceed- whether to speak to our parents advisor and potentially delay things, apply for a mortgage in principle knowing that the debts could hurt us, or take another route. Any advice would be gratefully appreciated - we fella bit lost!

kingstreet

Are your in-laws happy the property and mortgage will be in your name alone?

They would have to gift you the money, rather than their son and declare they have no further interest in it, or the property. Some lenders might not even accept this, as you are not a blood relative of the donor.

A joint purchase and mortgage is likely to be the only way they will feel comfortable.

Grenage

I'd clear my debts first, then get a broker involved; I'd also want a join mortgage.

mrginge

How much debt, how much mortgage, how much income?

amnblog

Are your In Laws OK about you using their cash to clear your debt.

Don't assume they are just because they have not said anything.

Debtslayer

Did in-laws know you both have debts when they offered to give you 75k? If they didn't they may not be very happy to find that out now.
I would speak to a good Independant Mortgage Broker. They will be able to advise ref getting a joint mortgage and how much you could borrow with and without the debts.
But it will depend also on how much you both earn, amount you owe etc