We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
mortgage and high levels of debt
nathan882
Posts: 8 Forumite
My partner and I want to look to buy a house. We have a 10% deposit and our IFA and the calculators online say we can borrow £200k. My concern is that we have high levels of unsecured debt in the form of Loans credit card and HP. Our IFA seems to think we will be okay because the affordability online shows that this is fine even with this debt, Im not so sure. I'm concerned that we will offer on a property and then have our application declined because of this debt. Our credit scores are excellent and we have never missed any payments on anything. Any advice?
0
Comments
-
Trust your broker to use the right lender.
Some have issues with unsecured debt to income ratio, some don't.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Cant really comment without having your figures. However i will say that what i think is affordable and what my bank thinks is affordable are quite some way apart, its a good thing i have self control.0
-
If the proposition passes the lender's affordability requirements with the debt in place, then the only potential issue is the lender's attitude/policy on debt to income.
As suggested, the broker will know who to avoid given the circumstances of the case.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Regardless of what the broker says, if you borrow £200k, would you be fine managing the repayments together with other debts?EU expat working in London0
-
equally you have to consider if one of you lost your job can you still afford the mortgage and any other expenses you have which the mortgage company wont do. I could borrow 290k based on my income but wouldn't dream of doing as its over half my take home pay.0
-
You would be VERY well advised to use that £20k deposit to pay off your debts first.My partner and I want to look to buy a house. We have a 10% deposit and our IFA and the calculators online say we can borrow £200k. My concern is that we have high levels of unsecured debt in the form of Loans credit card and HP.
What interest rate are you paying on those debts?0 -
Have you owned a house before because you are at high risk of losing this one because of the debt. When you buy a house you have to have enough savings to pay the mortgage if you lose your job because you can't get housing benefit to cover a mortgage. The most you can get is for the mortgage interest to be paid for a limited length of time. If you have as much debt as you say you have you will have trouble saving for repairs and other emergencies like losing your job.
What would be a good idea would be to pay off the debt first before you start the process to buy the house. You don't appear to be able manage without taking out loans.0 -
Try and restrain yourself to a more basic home, £120k or so. Life will be a lot less stressful.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601.1K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards