Credit Card Debt

Thrugelmir

glentoran99 wrote: »

Do they? News to me, I would imagine there are few people can afford a mortgage if they don't have a job

Profiling applicants is all part of the process. How someone behaves is a good indicator as to the risk they pose. Lenders have no need to chase new business. Plenty that meets their criteria.

kilby_007

You sound like you're living outside of your means, if you earn 100K and don't have enough savings behind you to pay a few months rent and any emergency funds. What are you renting? A mansion?

glentoran99

Thrugelmir wrote: »

Profiling applicants is all part of the process. How someone behaves is a good indicator as to the risk they pose. Lenders have no need to chase new business. Plenty that meets their criteria.

They do, but stating if you don't have a lot of savings doesn't mean you aren't serious about buying a house is nonsense,


as is being able to afford your mortgage if you lose your job,

swishy87

Cakeguts wrote: »

I am sorry but this doesn't make sense. If you are thinking of buying a house why are you still having to use a credit card for emergencies? People who are serious about buying a house are savers. They don't have emergencies that need to be paid for on a credit card they have a lot of savings that cover all emergencies because this is what they will need to do when they own their home.

Turn this round and look at it from the lenders point of view. Would you say that you are a good risk? You both have good salaries but have to use a credit card to pay for emergencies because you can't save enough to pay for them? Would you lend any money to someone like this who can't budget? If you own a property you have to have enough spare cash to pay the mortgage if you lose your job.

Pay the debt off before you apply for a mortgage. Don't buy anything using finance.

OOoo flipping heck we've owned a house together for almost 7 years and don't have "a lot of savings" or particularly good savers!

OP - I would say use some lenders calculators. Any debt will just be taken into account towards affordability so it may mean you can borrow less than you need, or maybe still enough. Have a look around, see what calculators are saying then decide how to deal with it.

Cakeguts

swishy87 wrote: »

OOoo flipping heck we've owned a house together for almost 7 years and don't have "a lot of savings" or particularly good savers!

OP - I would say use some lenders calculators. Any debt will just be taken into account towards affordability so it may mean you can borrow less than you need, or maybe still enough. Have a look around, see what calculators are saying then decide how to deal with it.

What are you going to do if you lose your job? Could you pay the mortgage without work for a few months or will you just wait until the house gets repossessed?

Cakeguts

ronny147 wrote: »

We have to take a hit on our sale and this already eats into our equity money

But you would have already know this it won't have been a surprise. In any case you can't get at the equity until you sell so you can't rely on that to pay bills when you are still living in the property.

Carl31

i had about £6k of credit card debt when we bought about 3 months ago, i was told in relation to earnings, our debt was 'low' so wouldn't be an issue, but i suppose it depends who your broker is

our combined earnings are lower than £100k

Carl31

marksoton wrote: »

Not being funny but if you have an income of £100K but you need to load a CC with £5K and you can only pay £500 PM you're spending beyond your means.

anyone with any financial sense, and good money management skills will use 0% cards to their benefit, no matter their income level.

Bluebird24

We have just had a mortgage approved with more credit card debt than that, but our mortgage payments will be a third of our current rent.

marksoton

Carl31 wrote: »

anyone with any financial sense, and good money management skills will use 0% cards to their benefit, no matter their income level.

I don't disagree.