I have £2,500 worth of debt. Can I get a mortgage?

LRBSN

Hello everyone,


I have around £2,500 in debt (which is being paid off every month via Direct Debit, albeit slowly). I rent at a cost of £600 per month and have done for years now. I’m in full time employment as a qualified train driver for one of the major Train Operating Companies.

Is it at all possible to apply for (and be successful) in securing a mortgage? I would naturally be a First Time Buyer.

Your advice and knowledge would be greatly appreciated.

Kind regards,
L

GoingOn30

Depends on your income? Any other monthly financial commitments? What have you got saved as a deposit?

LRBSN

My income at the moment is £39,500 which will rise to £52,000 in June 2019. I don’t have any savings at the moment due to wanting to get rid of the debt.

Thanks for your reply

jaelato1

It is very possible. when you are ready get a broker so you can be sure of how much to borrow and how to go about mortgage generally

csgohan4

mortgage is possible, but needs minimum 5% deposit, Preferably more for better rates, noted you mentioned you have no savings at present

ACG

Having debt is not a deal breaker and on your income, £2,500 should not be a problem. It may impact on how much you can lend but not too much.

robin58

I'm more interested in how on £39,500 a year, with only £600 a month rental, you have no savings and having trouble paying of a £2,500 debt.

You need to look at your spending as I doubt you will be able to service a mortgage.

julicorn

robin58 wrote: »

I'm more interested in how on £39,500 a year, with only £600 a month rental, you have no savings and having trouble paying of a £2,500 debt.

You need to look at your spending as I doubt you will be able to service a mortgage.

That's exactly what I was thinking as well. Of course we don't know your exact circumstances, and maybe you've been paying it off for a while, but it seems unusual.

AnotherJoe

LRBSN wrote: »

Hello everyone,


I have around £2,500 in debt (which is being paid off every month via Direct Debit, albeit slowly). I rent at a cost of £600 per month and have done for years now. I’m in full time employment as a qualified train driver for one of the major Train Operating Companies.

Is it at all possible to apply for (and be successful) in securing a mortgage? I would naturally be a First Time Buyer.

Your advice and knowledge would be greatly appreciated.

Kind regards,
L

Yes, though the real question is, what size mortgage?


Given your mortgage is likely to be in the realm of what £500-£1000 month, why not pay the debt off quickly? Then save a better deposit which will lower your interest rate. Then buy.

So, I'd wait until you get your pay rise in 2019.

dimbo61

There are more questions than answers ?
Words from a song !
Where you live, where you want to buy, age, job and job security, credit score and debts/savings, Bank of Mum and Dad.
Your lifestyle and how you spend your income each month all must be considered.
Pension, partner? Kids ?
If your a train driver in Crewe then £40/50K a year is a great income and 3/4 bed houses might be possible.
£50,000 a year in London might get a shoe box