Separating from my Wife

Freighter

Hi,


I am separating from my wife and I am looking for some advice on how to get a new mortgage on my own.


SOA
Income 40k a year
Outgoings per month

£300 credit card (13k balance) (((currently in an interest free period))

£360 personal loan (10k Balance)
£280 childcare
£140 car finance (2k balance)



Me and my wife are on good terms, and she has agreed to buy me out of the family home which will give me 17k to use.


Ideally I would like a mortgage at 120-140k.



I am trying to decide how to use the 17k to clear debt and how much to keep for deposit.


Any help or advise would be greatly appreciated. Thank you for reading.

kingstreet

On a 25 year term, one high street lender would offer you £87,700 maximum assuming no debt repayment on/before completion.

Use a lender affordability calculator and try removing each item of debt to see what you could borrow v the deposit you would then have.

Freighter

Thanks.


I was considering using 10k of the 17k buyout to clear my personal loan, which would reduce my outgoings considerably. But then I am very worried I will not have enought deposit.


Am I wrong to be so worried about the deposit?

kingstreet

No idea.

Will you pass credit score at 90% or 95% or do you need a bigger deposit?

It might be a good idea to get independent broker advice.

BTW that £13k card debt is taken as either 3% or 5% as a monthly cost by lenders, that's £390 or £650 depending on lender chosen.