First time buyer, little bit of debt

first98

Hi all,

I'm soon going to be applying for a mortgage on a new build property that I've bought with my partner. I'm just a bit concerned as a I have a bit of debt that I'm trying to pay off but it won't all be paid off by the time of mortgage completion.

EDIT: Neither of us have ever been late on payments, we both have excellent credit scores (from MSE) and had never had a payday loan.

The house is valued at £335,000.
We are using the government help to buy equity loan to bring us up to a 75% LTV mortgage.
My salary is £40,000 and my partners is £30,000.

I am in debt by £4000, next month I'll pay off approx £1500 of that.

We are going to be applying for our mortgage in September.

Will we be okay or will my debts hold us back?!

Thank you in advance.

PS, if anyone is familiar with the help to buy equity loan scheme and has gone through it before I'd really appreciate any tips you have from it that you learnt along the way.

YHM

I assume by in debt, you mean you have a credit card / loan with a balance of £4000 on?

This shouldn't be an issue at all. Its low in comparison to your income and it appears you conduct your finances well.

Make sure you use a broker to find the best deal for you

first98

Thank you for your reply.

Yeah, it's a £4000 balance on my credit card although I'm hoping to reduce it by between £1500 - £2000 by the time we apply for our mortgage.

I've considered using a mortgage broker but my family are really against it as they were ripped off by one many many years ago, resulting in the police being involved due to harassment.

Have times changed? Will it help me get a better rate?

EDIT: I should also mention I have my car on a loan of £16,000 remaining which costs just under £300 per month.

YHM

Things have changed significantly in the broker place. The majority of brokers have cut their teeth working for banks / building societies and their is a greater emphasis on professionalism nowadays.

Most lenders do provide the same rates through their direct channels as well as through brokers, but what you truly get with a broker is that personal experience from start to finish, much better than being a transaction to a bank!