Mortgage and Debt.

AnxiousHomemaker

Hi, last year my husband was in a car accident that left him off work for several months and then when he did return he was on part time hours (he has just gone back to full time) As a result of his reduced income we unfortunately got into debt. We have never missed a payment but I am aware that to potential mortgage lenders our borrowing may look erratic... the accident wasn't my husbands fault and he will be receiving some money from insurance which we will use to pay the debt back (before applying for a mortgage) but I am wondering if the damage is already done and what we can do in the mean time to make our situation look better? Will the accept an explanation or does it look bad that weren't prepared for this kind of emergency? We would like to look at moving in about 6 months as our youngest daughter will be starting school and our childcare bill will reduce dramatically. Thanks in advance for any response x

ACG

It depends on the details. If your debt is more than around 30-50% of your annual income you may find your options reduced, although you should still have normal rates available to you.

You may need to clear some of the debts and wait for it to update on your credit reports before applying to some lenders.

If time is of the essence, it might be using a broker to guide you to the right options.