Help Me- First Time Buyer & Debts

debtblue

hello all

Is it possible to have a mortgage for first time buyer with debts.

My debts at the moment stand at £21000. At the moment i m paying £1000 towards my debts, so it will take another 21 months before i m all free, and i have no savings at all.

My salary is £26000, and i want to be on the property ladder as soon as possible. Houses around me are around £140-160000.

I have never missed out any payments. Is it possible for me to be on get a standard mortgage? as i dont want sub prime mortgage.

Please help me if you guys have been in the same case. Please tell me what can i do in my situation.

All your advices will be very much appreciated.

thanks
debtblue

17Dave

If you have not missed any payments in the past or had other "bad credit" experiences you will not need a sub prime mortgage.
Most people who take out mortgages have some other current debt.

The impact it will have is that the monthly required payments will be taken into account when calculating your maximum mortgage.

Without a deposit and given the comments above you might find it difficult to get a £130,000 mortgage. Do speak to a broker and get an idea of payments and availability for your circumstances. You may also then get an idea of timescale for getting on the ladder, now or later.

tomjeffery

it doesn't sound like you can afford it at the moment.

if you're clearing about £1600/month (is that about right?)

£1000 towards your debts
mortgage will be about £600

then there is no money left to live and all the other bills....

debtblue

tomjeffery wrote: »

£1000 towards your debts
mortgage will be about £600

£1000 I pay because I want to be out of my debts asap, if I pay just the minimum it comes down to £600 per month paying my debts off.

debtblue

Also do you think I can afford 50% shared ownership??

poppy10_2

No way you can afford a mortgage mate, sorry. Even on a £140,000 mortgage, interest payments will eat up £700 per month ( £912/month if repayment rather than IO). Concentrating on paying off your debts and moving up the career ladder rather than the property ladder.

timnicebutdim_2

Just did a quick search on the borrowing calculator on A&L website and with Income at £26K, monthly loan commitments at £600, Nil deposit you will only be able to borrow up to £45,000.