Mortgage Prep advice

Regular_in_hiding

Hi

Apologies for the long post, however our current mortgage deal is up in 10 months and I want to make sure we are in the best possible position to get the best deal come renewal time.

So mortgage required will be 120k on a house value of 200k

I earn 35k hubby earns 65k my experian rating is 980 hubbys is 987

The issue is our debts all being in hubbys name and I'm worried this may cause us problems, as looks like he is in alot of debt when actually it's both of ours and is more than manageable on that basis.

So our debt is as follows;

13k loan 1 (380 per month)
8.5k loan 2 ( 350 per month)

4.5k on a 0% credit card (limit 10k) paying back 75pm to clear
2k on everyday credit card ( limit 8k) paid off in full everymonth
£0 oñ old credit card not used (limit 8k)

350 per month on a Pcp car deal (loan value on credit file of 26k)

We currently have 27k in savings/current account eye.

Although I know some people don't see the point in having cash in the bank when you have debt, the comfort I get from this, should anything go wrong, far out ways the extra interest I pay back (not very mse I know )

Do people think the above situation, with the debt all being in hubbys name, will cause us issues when getting a new mortgage, should we be looking to pay off one of the loans, or should I be looking to take a loan in my name to wipe out some of the ones in his name (which would allow us to keep our savings) or as it's a joint mortgage will the above be ok?

Any help/advice would be appreciated.

Thanks

foxy-stoat

A loan to shift debt from one name to another probably wont really help as its going to be in joint names with joint income.

You are going to be better off in using £21.5k of savings to clear your 2 loans, then pay £730 a month back into your savings pot. It will take you 29 months of put back the amount you have taken out - and making you more attractive to lenders....although if you try the online retention product the lender may not even run a credit check on you.

There is zero point in having £20k+ in savings with loan debt AND having £20k+ of unused balance on credit cards....unless the loans are like 2 or 3% but even you are paying for the privilege to have savings....they are not really savings though, but if it makes you feel better then carry on.

GoingOn30

Agree you need to shift some of the loans. Just for the few months before you apply it would help to get that debt down, so maybe use 10-15K of savings to reduce the loans and then once you have your mortgage agreed again start to build the savings back up again.

Thrugelmir

If you want a good deal. Then your savings to clear your debts. Otherwise the picture painted isn't reflective of your true financial state.

Agree it's good to have savings. However your income pre tax is a £100k. Perhaps there's other questions that you need to find answers too that aren't relevant to this board.

Are the savings yours and the loans your husband has the result of consolidating other debts?

amnblog

Cannot see the problem.

Your current lender will have some options for you and you will also have other options elsewhere.