First time buyer query

sillysladey

Hello,

I'm Looking to get onto the property ladder within the next 6 months but I do have a query. A few years a ago I was silly and maxed out a credit card, lost my job and was unable to repay, this ended in a default being registered against my credit history. 5.5 years on I have been repaying £50 per month and the current balance o/s is £1,500 (which is not incurring interest). I do however have £6,000 worth of savings which is for a house deposit. Should I repay the old debt before I apply for a mortgage or do you think that because I am making repayments, they will overlook this? The o/s balance would have a significant impact upon my deposit. Many Thanks

Cakeguts

What sort of house do you expect to be able to buy with only £6000 in savings? You need a deposit, money for surveys, solicitor etc.

mattk_180

I wouldn't have thought £1500 on a credit card is going to make too much of an impact on your application. The main thing would be the mark on your history which will be there whether you still have the balance or not.


Secondly, what kind of houses are you looking at? Even with a help to buy scheme I imagine you should need to have at least double what you've saved before you start thinking about buying, in which case I would have thought the difference of having £4500 now and £6000 isn't going to make much of a difference at this stage.

sillysladey

Luckily I live in the north east where £5k goes a long way 5/7.5/9% of a 2 bed semi property value. Not to mention government schemes that's available. + £1k for solicitor fees.