Our first steps in buying a house

Cakeguts

PrettyFlower90 wrote: »

I understand what you're saying but take offense to implying that I'm not serious about saving. I have saved £18k alone while also paying for a wedding on top, I don't go out, I don't shop, I don't buy things for myself. What I'm wanting to see, not particularly from people on forums as such, is if £2k on a credit card would significantly hamper our mortgage chances, as paying the £2k and effectively taking this from our deposit savings would significantly put us back as we wouldn't then have enough deposit.

It isn't the going out and the shopping that is the problem it is all the little things that people pay for that they don't think matter like the only £23 pound a month for the credit card and the only £2000 spent on the credit card. Saving £18k on you own and paying for a wedding is great but if you hadn't spent the £2000 on the credit card your deposit would now be £20k and if you didn't have the credit card it would be rising at the rate of an extra £23 a month. The bigger the deposit you have the more choice of lenders.

PrettyFlower90

I'm not asking for savings advice thanks, as I'm pretty good at this so don't need telling what I'm supposedly doing wrong.

Think I'll go to one of my bank advisors or a broker as others suggested as a good place to start. Thanks for the replies!

hazyjo

Guess all lenders are different. Mine did knock off my ex's CC debt (and enough to allow for interest, etc) which made a significant difference to what we could borrow. In the end, his flat sold first meaning he could clear his debt and it didn't affect what we could borrow together.

Jx

AdrianC

Of course CC debt is offset against your savings.

You've got a CC with £20k available at 0%. Perhaps you should max it out, and put the money into your "savings" for the deposit...?

Oh, wait. You still OWE that money. What if the CC company decide they're going to close your card, and would you please pay it back?

PixelPound

You could look at unbiased.co.uk and find a few local mortgage advisors and give them a ring. Most will do an initial meeting free, and you could get a feel for them over phone calls. They should be transparent about charges too.

PixelPound

AdrianC wrote: »

Of course CC debt is offset against your savings.
You've got a CC with £20k available at 0%. Perhaps you should max it out, and put the money into your "savings" for the deposit...?

Oh, wait. You still OWE that money. What if the CC company decide they're going to close your card, and would you please pay it back?

Debt doesn't have to be offset against savings, it might affect the maximum amount you can get as it effects affordability (because of the monthly costs to service the debt), but its different for different lenders.

To OP there will be people on here insisting you have to pay debt off first, I received such "wisdom". I had enough savings for 10% plus extra for fees and a reserve for unseen events, plus an existing older loan, if I had had to pay the loan off first, I wouldn't have had 5% never mind 10%plus :eek: .