First mortgage

Tcv

My husband and I have started saving in a help to buy isa. We will also be given some money to help with the deposit. We hope to have 5% by next year when put all together with interest and the bonus etc..
I am worried though as we both have credit card balances which we are paying off (over minimum) we have a small car loan again paying off. And we are in our overdrafts. We both have good credit history and settle and close accounts etc. But worried with only 5% deposit will go against us. We also have joint income of about £43,000. Any advice please.?

Boredatwrork

Consolidate the debt as much as you can, on the best rate as you can (O% if you can). Use the cash you are saving to pay the debts off (without incurrering any early repayment charges)

The mortgage lenders usually look as far back as 6 months ahead (unless you are self employed,then it can be longer). So the aim is to make yourself as attractive based on this date as best you can. Refrain from getting any other loans etc or go overdrawn.

dimbo61

Time to look at your budget
What do you do with your income each month?
how much do you spend on Costa Coffee each week.
Write down everything you and your partner spend each day/week/month.
Start to make savings where possible and clear the overdraft first as that is costing you money each month.

Tcv

Thank you. I think most of our outgoing are going on payin off cards and saving about £400 a month but we want to save so we can have a deposit and house sooner rather than later. I'm concerned about getting overdrafts down and if anyone would look at us. We could easily afford the mortgage as we pay £650 rent now and also save. By after Christmas our cards will be nearly paid off. I just can see overdrafts difficult to get out of.