Overdrafts and mortgages

eedwards1993

Hi everyone just a question and hoping someone out there can help

I’m just about to start the process of looking for a house to buy with a good friend. Yes we are aware it posses risks and are going to have a contract drawn up.

Currently my friend has money to put towards a deposit which I do not but I will be there to help combine wages to make us more appealing. I will potentially be able to match this through a loan from a family member to make us equal partners going forward.

However the last few months I have been going into my overdraft by about 200 is it worth waiting before doing anything further until I am out of my overdraft for a good 3 months??

Otherwise I meet my minimum payments on my credit cards and have avoided spending on them for a while now. My credit score is also high. We are meeting someone at a bank in a week or so to discuss going forward as this is new to both of us.

Any help much appreciated.

enthusiasticsaver

I think if you are constantly going overdrawn and can only make minimums on credit card repayments and presumably have no savings you should wait until you are in a better financial position. Buying houses is expensive. Even if you don't have to put a deposit down there will still be survey costs, legal fees, stamp duty etc. You can't use a loan for a house deposit even from family. If the deposit comes from family they have to sign to say it is a gift and they have no interest in the property.