First Time Buyer with Overdraft and C card!?

NaHu

----Blank----

stevenhp1987

If you have been able to save for a deposit, why have you been paying minimum on your credit card and using an overdraft? The fees and interest alone will be more than what you will earn on interest on your savings!

NaHu

----Blank----

AnotherJoe

Is rent substantially more than a mortgage will be? Because otherwise I don't see how you can contemplate a mortage if you are spending everything you earn, you have nothing spare for any of the expenses of running a house.

I think you need to get yourselves to a position where you do not need or use an overdraft before yiu contemplate a mortage.

maurice28

Would your family object if you used the money they have given you to clear your debts, instead of paying a deposit. It all goes towards helping you buy a house so hopefully they'd be OK with that.

Otherwise, I'm not sure you'd be able to get a mortgage (or realistically be able to afford being a homeowner) in your current situation.

kingstreet

Getting a mortgage is likely to be about account conduct and credit history.

How much you can borrow is going to be determined by affordability on which your credit commitments, the future cost of the equity loan and any ground rent and/or service charges will impact.

You need independent broker help with this to establish your options.

Do a budget planner for your income and outgoings and work out what will be a comfortable monthly mortgage payment. See how that compares with the illustrations your broker produces.

takman

NaHu wrote: »

I am currently looking at my options to buy my first home with my partner.

Our current debts are causing concern and I would like some opinions on what my chances could be for applying for a mortgage.

At the moment, I have an overdraft limit of 2k and each month it gets paid back to almost £0 but then it used again by living costs and bills.
I also have a CCard with and £2500 limit which I pay minimum payment for every month but often have to use what I have paid again.

My partner has just paid her OD but has used it to an certain extent every month now for a while. She does however have a £6k CCard but with only 1k used.

Basically I am just wondering on whether we should give up for now and continue to save as we have the 5% deposit for HTB for the houses we are looking at but concerned around the borrowing part.

NaHu wrote: »

The majority of our deposit was given to us by a family member as a gift. The overdraft was due to a bad change in circumstances a while back and have just been unable to drag myself back to £0 !!!128577;

You really need to post on the Debt Free Wannabe section of this forum and put a SOA of your finances and get them to help you sort it all out. If you did manage to get a mortgage then it will be a financial disaster for you especially when the first big bill come up.

csgohan4

OP you need to get a grip of your finances and dipping into your OD does look good from a lender's point of view. Hit the debt free wannabee forums and hit that debt hard, buying a house at the moment will only increase your debt not reduce it