Can we get a mortgage?

Toby84

Hi,

I hope someone can help or offer some advice.
Myself and my fianc! are looking to buy a house together. I used to own my own home but sold it last year. We are currently renting and have quite a good deposit £40k to put down and we are only looking at properties of up to £250k.
My fianc! was lucky as he got some inheritance money and paid off his credit card. On the other hand, I have just over £3,000 on a credit card and I live in my overdraft £2,250. I have never defaulted on anything but do always use my overdraft.
I'm worried that because of my overdraft we may not be able to get a good mortgage offer. Any advice or help/experiences would be really appreciated.

marliepanda

So you have a £35k deposit.

Pay off the debt and you still have over a 10% deposit. Providing your income supports a £215k mortgage then you'll be okay.

Toby84

Yes that has already been suggested but my other half does not want to use his inheritance money to do that unfortunately....

Toby84

And yes I earn 35k he earns just over 45k

cooltt

Toby84 wrote: »

Yes that has already been suggested but my other half does not want to use his inheritance money to do that unfortunately....

We dump him then because he's not thinking of "us" it's just "me".

Yes you'll get a mortgage but a sh*t one purely down to the fact you're not prepared to pay off our debts to demonstrate you're financially astute. That's a massive red flag to a lender.

Tyler119

I'm surprised with a combined £80k income that you need to ask the question in the first place. Why would he not want to pay of the debt?? It surely has to be paid at some point.....oh ok he does not want to pay of your debt???

Well the split in the house could be worked out to take account of him paying of your debt....perhaps get ready for a future pre-nup.

ACG

Should be possible to place it in principle. You need to speak to the lender before applying but its not a deal breaker. Alternatively grab a broker and they should be able to place it.

gettingtheresometime

Actually I can understand his reluctance.

As it stands there's nothing to stop the OP clearing the overdraft and then running it up again.....it's the old adage on the debt free wannabe board that unless you address why you got into debt, or in this case why you live in your o/d then nothing is going to change & history is doomed to repeat itself.

Also, being cold hearted here, if the OH cleared the OP's debt & overdraft, how could it get it back if they split up?

Personally I'd make efforts to clear the card & overdraft myself, & given the salaries involved thus shouldn't be too difficult.

AdrianC

£5,250 card + overdraft shouldn't be hard to clear within a few months with a £35k salary (roughly £2,250/mo after tax), especially living with a partner who earns more than that. Simply cut back a bit on the discretionary spending.

IF you're determined to clear it...

Fireflyaway

How much do you have left after paying your bills? You are not in a mountain of debt and have good incomes so could you not spend a few months paying back the od before applying for a mortgage?

Hoploz

Has the entire 40k come from your partner's inheritance, or was some of it from your previous property or your salary?

Frankly it sounds ridiculous to be paying god knows what interest on a £3k credit card debt when there's cash in the bank. Do you spend every penny of your salary on yourself every month, and remain in overdraft?

You need to be in a partnership where you are working collectively, if you are to be buying a house together. Is he going to have separate groceries to yours, and divide the gas bill in half every time?

Some joined-up thinking required here.