Pay of CC debt or use for bigger deposit

Live84

Hello alll

I’ve recently applied for my first mortgage and have been advised I may need a 15% deposit instead of the 10% I put down originally. I checked my credit report and there is a hard search from Barclays so I assume that info is from them. My Mortgage advisor has got me a DIP from Halifax. Having checked all the affordability calculators online, Barclays are actually the worse I’ve found with my details provided. The value of the property is £232,000 and my salary is £53000.

I’m due to receive about £3000 from a car accident I was involved in 18 months ago and was wondering if it was better to pay of some of the CC debt, which currently sits at £7000, or add it to my deposit? I know this is still isn’t 15% and obviously I won’t be going with Barclays. The most I probably could get is 12/13% with the settlement from the accident so thinking the latter could be a better option.

Thanks.

firstbuyer

Morning!

We were in the same position (kinda) - found out that it actually worked better using some of our deposit to completely wipe off our cc debt, and then in turn our deposit worked out a lot lower!

Speak with your adviser and get them to play around with the numbers for you - ours did and it worked out for the better.

Live84

Morning

When I’ve checked the affordability calculators, and I’ve done most of them. I tend to come out either right on the max limit of what I need (£208,000), just under, or in Barclays case, about £15,000 under.

Obviously the £7000 CC debt is giving me a lower figure and I simply cannot jump from 10% to 15% in the time I have.

I have £24000 now for a property worth £232,000. Do you think I could get a 5% mortgage on a £232,500 house? Albeit with no debt. Cheers.

firstbuyer

Honestly - I'm not a mortgage adviser so ... No Idea :rotfl:

You can ask around on the forum but your adviser is going to know the most detail in regards to your position so I'd speak to them.

I spoke very frankly to my adviser and didn't want to be in a position of 'you could just about get it' I preferred to be in the position of 'you can easily get this'.

If you don't like the response you get, speak to another one! Or pull the plug, wait til you've cleared half/all of your debt and then re asses.

Good luck - I know the stress that comes with applications.

Live84

Yeah your not wrong, very stressful

I mean my Mortgage advisor has repeatedly said I may need 15% because of my credit report, yet I keep reading on here that credit score shouldn’t matter to much it’s just a number - yet he keeps referring to it (770 on Experian)

I’ve had a good search on the forums and have seen a lot of people who have got more outgoings and less income that me yet they seem to get pretty large mortgage offers. Affordability is no question right now so it’s really baffling

Thanks

Live84

Just to add to that. Would it not be to late or would it hinder my chance of getting a mortgage on the property I’ve seen, if I was to switch mortgage advisor now? Thanks