Buying a rented house

wesjones

Hi All i need some advise we have been privatly renting a house for the last 6 years, and the owner has to now sell, he has agreed a good price to us, but i have never had a mortgage before and was not prepared to do this now,

I have a few credit cards and car loans so dont know how this will effect the mortgage decision, as if i had known sooner then would have cleared the debts before applying for a mortgage,

Thanks

hazyjo

Do you have a deposit?!

wesjones

yes we have the 5 percent, just wasnt expecting to do this right now otherwise i would have cleared more off

hazyjo

Presume the deposit is not borrowed?


By having debt, it will most likely mean the lender will reduce what they will lend you. I was buying with an ex before and, despite the fact we were selling both our properties to buy a joint one, they still included all his £10k- or so debt (and some more to allow for interest and risk) and knocked that off what they'd lend us (despite the fact it would have all been cleared on the sale of his flat). In the end, he sold the flat before my house so he'd cleared his debt when we eventually applied for a mortgage.


You'd be better off paying the debt off but then obviously you'd not have a deposit.


Speak with a broker who will advise. If you're looking to borrow a lot, it may be that with only a 5% deposit, lenders will be very cautious.

foxy-stoat

Your debt will effect your affordability - there is some online quick indicators to see how much you can borrow based on your salary and debt. Try them first just to see how much you can actually borrow.

wesjones

thank you,