Mortgage and Credit Card Debts - Brokers?

[Deleted User]

Hi All

I have a shared ownership mortgage at 25%.

Visited the bank (Halifax) today and was advised no additional borrowing because of my financial commitments.

Halifax have confirmed that once we purchase the remaining 75%, the mortgage repayments will be less than our current rent + mortgage. So we will be making a saving.

I have three credit cards;

1 x 11 K
1 x 1.5 K
1 x 4.5 K

They say we must clear all of these in order to have the new mortgage.

We have around £13K ready to put towards this, obviously slightly short.

Mortgage is based on £150K, bank value on property is £179K

Income is £26K + £12K additional income.

Should we be looking to stick with the lender and get everything paid.

Or is there a way we can get this morgage by not paying everything off.

Remember we will be making a saving once this is done, so it will not increase debts and will be then easier to repay these outstanding amounts.

Any help appreciated. Thanks again! :-)

[Deleted User]

Anyone 😩 Worried now

MortgageMamma

Hi - I haven't deal with shared ownership for a very long time but based on what you said the affordability for the loan just isn't there until the debts are repaid in full. That's quite a lot to have outstanding on cards - almost half your income. Do you not have a family member that could lend you the extra 4k to pay off the final bit, and then repay the balance to the family member once you are making a saving on your total monthly housing cost?

You could of course ask the lender to lend with a full undertaking that you will pay off the remaining 4k within x amount of months of completion, but I'm not sure how likely they are to do it, and if they did they would almost certainly check that you had.

I think the way to put it to them is that you are trying to buy out the remainder of your shared ownership to save money, and that the saved money could pay off the card. You would think it was common sense but this is mortgage lenders we are talking about!

[Deleted User]

Thanks for the reply. Makes sense and so we will look to repay it - I just thought we'd have to repay less as don't have any other debts like cars etc. But I do understand just wish I'd have saved a bit more :-)