ftb, advisor help appreciated!

DamienGiles

Firstly, Hi! My first post so please bare with me!

My girlfriend and I (both 21) have found a house we're interested in.

It's £70k asking.

We're 1st time buyers, she has stayed at her parents and has a clean credit history.

I on the other hand have moved around a lot in the last few years and have one late payment on a credit card 1 1/2 years ago.

In total, debt wise, she owes about £5,500 on a loan and £2,300 on two CC's.

I owe about £10k in total, £3,200 on 0% HP, £2k on loan and rest on 3 O/D's and 2 CC's (£1,500 each).


Gross, I take home £14,142 and she takes home about £11,462

We've got together a deposit of £3k.

Since we're both young, and in a fair amount of debt we were questioning whether it would be better for the lending if we were to both take out a loan to cover one another's borrowing. She would take out the £7.5k and so would I, leaving the 0% HP.

We'd close down all other loans, CC's and just both have one £500 CC for monthly spending repaying in full and a £250 OD on current accounts each.

Now, to us it would be better to re consolidate as it'll make managing finances so much easier - plus we both get subsidies rates working for a bank.

Do you recommend re consolidating so mortgage lenders would only see the one loan for her and two for me or keep it how it is?

What we plan to do would be to take out a 100% int mortgage, use the £3k as emergency funds. Do the house up a little and re-mortgage in a few years clearing both debts and then free up some income.

Is this the best way forward?

Who would we contact to have the best chances of being accepted? We don't want to got to mainstream banks and be credit checked for every application only for this to effect future mortgage applications.

How reliable will a broker be in selecting a provider that'll consider us on the information we give at the beginning on the application and not turn us down after the credit check once the valuation fees have been paid.

When brokers say they search all the mortgage panels, does this really mean ALL? I've looked on the http://www.cml.org.uk/membersarea/directory/search.asp?dir=1


As you can see, lots of questions!

Thanks for reading this far!

kevinchapman82

Rather than consolidating first, you could look at using a lender like Northern Rock, Alliance & Leicester or Coventry who lend above the purchase price. You could then consolidate your debt at the same rate as your mortgage. For example, if you buy for £70,000, you could borrow £85,000, consolidate your debts and use your savings to pay other movings fees.

saver_mum

Myself and my partner are looking at buying for the 1st time we are 29 and 30
I am interested in the sharedownership mortgages that our area currently offers..
We saw a "mortgage" man yesterday who quite frankly was crap!!
So i need a bit of advice ..
Iam currently on mat leave and have 2 children and have an income of £451 a month( when at work its 17k with bonuses) plus £640 in tax credits and £120 in child benefit and £2400 in child maintance (not court enforced but for over 7 years paid via bank acc monthly) i have no balance on my store cards or credit cards and will shortly have access to £6k for moving fees ect ect..
my partner lives with parents and earns £17lk a year and has approx 11k of debt..
we wanted a joint mortgage from a lender who will lets us purchase a shared ownership house worth 96.250k(50% share) and a monthly rent of £182
we were told we wouldnt get one and our only option was to get a mortgage via northern rock for around 160k purchasing a house for 150k and the 10k added on to consilidate debt...
the northern rock morg is at 7.1% fixed for 5 years..
this seems a litle unfair but he told us our income wasnt sufficiant to get any othert mortgage..
Any advice would be gratfully received..