Loans/CC and Mortgage Help

joed72

I earn 47k a year and my partner earns 22k a year.

We recently sold our house and have £220k in the bank.

My debts are:
£4850 on one Loan
£6300 on another Loan
£900 on one card
£7700 on another card
(money was taken out to improve the house, pay for family matters overseas with a relatives bereavement/funeral costs)


So around £19k

I pay £300 a month on paying back the loans and £140 a month on the credit cards (balance transfer 0% for another 2 years).

We were renting while selling our house and had a friend living there as a lodger - while I was also still living there and paying the mortgage, bills etc - and paying the rent and bills where my partner and children live.

I earn £2600 a month but had been paying over £1200 a month in bills and mortgage but that is now going down to £740 a month as I've moved back in with my partner in the rented house we live in.

I'm hoping we can get a joint mortgage approved for £230k as we have seen a house we love that's £420k (would be around £10k stamp duty) and I would use 10k to reduce my loans/credit card.

I've just noticed that my credit score has been hit by a missed payment to British Gas - this was due to an estimated meter reading - which I then put the new meter reading online but it came back as unrecognised a few days later, I then rang up and gave the meter reading and then paid the new bill. This was in December and I was also a bit all over the place as my mother passed away in the middle of December. I'm in the process of hopefully getting this knocked off my file - I've never had another late payment and it's the only negative on my file.
Every payment with British Gas had an issue as we did speak to them about it and the errors were always caused by the property having two meters - one that no longer worked - years before we moved in. This confused every bill and meter reading given!

So - to cut a long story - I have effectively £2200 a month after my debts. My partner has no debts and has around £1300 a month.

£10k debts
£190 deposit
£10 stamp duty (already have this amount)

Looking for a £230k mortgage - on a £420k house.

Around £3900 a month between us and a mortgage of maybe £1000 seems ok - but will a lender see that as feasible?

1 late payment (I'm hoping to have struck off)

What do people think of our chances of getting a mortgage?

Thrugelmir

Clearing your debts would seem an appropriate course of action. At least shows good intent. Before that cash pile gets whittled away.

Around £3900 a month between us and a mortgage of maybe £1000 seems ok - but will a lender see that as feasible?

Yes it's feasible. Remember though that mortgage interest rates are at historic lows. That large mortgage balance may one day become a millstone. Just when you don't want it to be. Be pragmatic and take the long term view.