First Time Buyer Chances - with debts

Mich81

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da_rule

You may need to boost your savings (assuming the £8k is all you'll have), as after you've paid your legal fees, stamp duty and moving costs etc you'll be left with less than an 5% deposit.

Also, it'll depend on the amount of debt.

Mich81

Thanks for replying - the £8k would purely be for deposit, we'd have a seperate pot for fees. Ideally we get one below £125k for no stamp duty but house prices are increasing quickly here at the moment.


I know we'll definitely need to see a broker rather than take our chances and apply ourselves.

ACG

I think the bigger issue is the 5% deposit and default, not because the default is an issue as such but trying to pass the lenders score cards may be tricky.

You have not said how much your debts are, but assuming they are less than £25k combined you should be fine. If they are more than that, you may find your options become a little less.

There is probably one lender it will fit with and a couple of other lenders if you get lucky.

Tricky to answer without a lot more information but I think there is a decent chance you will be able to get a mortgage, but I do think it would be a good idea to get a broker to give you the best chance of getting it through.

Mich81

They're below £25k yes - not ideal having any debts I know, but we've both been silly in the past - and need cars for work.


I know not to apply until the default has gone - as my chances will increase. We've even thought about him applying for the mortgage on his own, then adding me on when we remortgage in a few years.


You've given me a bit of faith that someone out there will help us, so thank you - I know we won't be the easiest Yes out there, but I'm hopeful that our decent income for our area should see us find something.