Mortgage with existing debt

GMac14

Hi All

Currently renting whilst waiting for £10k to be released to my partner from her ex once house sells. Looking to buy something for circa 160k, so will need to save at least another 6k to get 10% deposit.

I’ve had slightly bad credit file in the past, no ccjs but old defaults from 5 years ago which have now been settled, last one settled last month, so file is improving with 3 credit builder credit cards which are used 50 per month and paid in full.

Partner has excellent credit rating and has recently been approved for a loan of 8k used to pay off 2 interest free credit cards debt of just over 7k.

I earn 25k basic but regular payslips prove bonus of around 10k per year, partner earns 25k no bonus. Both cars paid for cash so nothing owed there, only debt is the 8k loan. We should be in a position to save 6k to add to the 10k for a deposit but it would be too much to save another 8k on top of the 6k to pay off the loan.

Is it possible to get a mortgage based on the above figures even though we have a loan of 8k? Our rent is 700 per month which would probably be a little more than a mortgage would be per month, no issue with affordability even when I have a flat month with no bonus.

Or is it better to try and pay maybe 4K off the loan, leaving 4K balance and then wait a bit longer to save up to get to the 16k deposit figure or is it best to wait longer and pay loan off in full before trying for mortgage?

Advice appreciated

tightasagnats

People may advise on here in time, but if you consult a broker they can give you a better picture based on your circumstances as they know very well what lenders expect and are likely to offer or not.

Always better to clear loans and debts, but again depends on your circumstances.

Good luck.

MrCH

A couple of years ago I had a personsl loan at around £8000, similar figures to yourself.

Wife had some defaults in the previous years and Natwest gave us a mortgage.

We went through a reputable broker.