Debt advice moving towards applying for a mortgage

DeltaHotel99

Hi there

My wife and I have £25k of debt with loans, credit cards and car. We have well paid jobs and are currently living with the parents. We would like to save for a deposit which would take 12 months.

Our predicament started today when we went to the bank for a consolidation loan and they offered us a 2tk loan for half of what we pay now over 5 years. Which sounds great but we're worried how it will look when applying for a mortgage in 12 months when we have our £15k. We have very secure jobs within the public sector and would be left with £2200 per month once all bills have gone out therefore would mortgage lenders turn us down due to our massive loan in 12 months time even though on the affordablility scale we would be able to afford a 150k house and it's repayment.

The bank told us to have the loan and just throw all of our money at a savings account but wouldn't answer the above question. Should we pay everything off and then save, thus meaning we stay at our parents for another 2+ years or get the loan and save and hope we get accepted next year ?

Sorry for the confusion!!!

DeltaHotel99

*25k

The £2200 is after everything including food has gone out

StokieBecks

Are you currently up to date with all payments on exisiting debts?

Smodlet

Hi there and welcome to the forum. There must be some mortgage advisors on here who can give you proper advice, with luck they will be along shortly.

Used to be the case that, if you could demonstrate you could afford the repayments, even if you had existing debt, that you could get a mortgage. Back when I worked in the public sector (long before personal computers were invented) lenders could not wait to throw money at you. Fortunately for the economy at large, perhaps, times have changed.

With the uncertainty at the moment, I would imagine reducing your debt is the priority, whilst trying to save at the same time. This is, according to those who know far more about the housing market than I, not a great time to be buying a house so perhaps you are in a better position than many, who do not have the luxury of time.

Best of luck and let us know how you get on.