Mortgage application and credit card debt

james_lawless

Hi,

I’m hopefully about to take my first step onto the property ladder, I have an agreement in principle and I’ve had an offer accepted on a property. I’m wondering if anyone can anticipate any problems with my circumstances as below.

I have credit card debt of just over £10,000. This was over £17k just under two years ago and it has been consistently decreasing with me making overpayments each month. This debt is split across two cards, and there is an available credit of £30k. I ocassionally dip into my overdraft but never significantly.

My gross salary is £42,000 although with overtime I anticipate this year I’ll hit well over £50,000.

I have savings split across two accounts. I have a help to buy ISA containing the maximum possible (opened on the first day they started) of £5600 + interest and a stocks and shares account with around 3900, so somewhere near £10k not including the bonus from Help to Buy.

I have an agreement in principle with Barclays for £165k based on the above. I’ve had an offer accepted on a property for £166k and intend on putting down a 5% deposit. Based on the repayment calculators I’m comfortable that I’ll be able to meet the mortgage payment and maintain my current level of debt repayment.

Thoughts welcome!

Thanks!

ACG

Nothing you have said makes me think you will have any major issues.

dimbo61

You will have stamp duty, legals,survey, mortgage fee and other costs so keep saving every penny and Good Luck

james_lawless

ACG wrote: »

Nothing you have said makes me think you will have any major issues.

Thanks ACG

I guess a follow up to that would be to ask how much of an issue it would be to make up my 5% deposit (£8300) from the Help to Buy ISA? I know that this is only payable on completion which is what prompts me to ask. Is this common practice now?

ACG

Money in a help to buy ISA I would class as savings, which can only help your application. Lenders would prefer to see HTB over a gift any day of the week.

Dont take this the wrong way, but you sound like you might want some hand holding? Have you thought about using a broker? A lot of our job is just hand holding. I am sure you will be fine (based solely on what you have put on here), but if you will sleep better at night knowing you have someone on side who will fight your corner if needs be, it can be a good investment.