First time buyer questions

ma77y

Hello all, hope your all enjoying the weather

Me and my oh are hoping to buy our first home in july. I earn £22779pa with bonuses and overtime and my oh earns £19650pa plus £400pa in bonuses.

We have spoken to a broker friend and based on our earnings and commitments we could potentially borrow up to £180k but the house we intend on buying is £165k and we have a £17k deposit.

My oh has no debts and monthly commitments are £110.

I have a vanquis credit card with a £3500 limit but owe £1890.

I im also paying off an old debt through dca at £1 a month and total debt is £1850. the debt was in default but dropped off my file a year ago as it passed 6 years. I have made two offers of f&f settlement but the creditor refused both. First offer was £600. Second offer was £900.

My total monthly commitments are £160.

I just need some advice on what to do now? Do i pay my credit card or do i try pay the £1850 to the dca? I cant pay whole ammount but will spread over 2 months.

Both our credit files are in good shape appart from my credit card utilisation being a bit high.

Many thanks for your help

Thrugelmir

ma77y wrote: »

I im also paying off an old debt through dca at £1 a month and total debt is £1850.

Pay it off. You'll need to declare it if you apply for a mortgage. Lenders may question your personal judgement and the manner in which you handle your financial affairs, if they see it.

f2f

Where's the 71k, tied up? Surely it's a no-brainer to pay off less than 4k with a big deposit like that. Why take the risk?

Jamesjames

f2f wrote: »

Where's the 71k, tied up? Surely it's a no-brainer to pay off less than 4k with a big deposit like that. Why take the risk?

The OP said £17k and not £71k deposit.

OP, I would advise you pay off your debt as this will likely increase your chances of getting approved for a mortgage.

norm_

I im also paying off an old debt through dca at £1 a month and total debt is £1850.

You have the money to pay it off, but won't? Not really the attitude any lender wants to see.

ma77y

Thanks for your advice, i will make a third offer of f&f settlement to the dca and see what they say. Failing that i will just pay it off then get my credit card balance as low as possible before applying.