Friend has £9k but is in debt - mortgage?

buel

One of my friends has been gifted £9,000. He owes, apparently, £5000 on credit cards and £7,000 on a loan. He asked me if he and his wife are able to get a mortgage whilst in debt. He said they’ve never missed a payment and have very good credit records. Combined income for both is around £55,000 per year.

I thought the chances of him/ them getting a mortgage were very poor but thought I’d check on here first.

Thoughts please?

minimike2

Yes they will be able to get a mortgage (assuming they meet criteria) - What I should say is that having other lending does not prohibit someone from getting a mortgage. The other outgoings will reduce the amount they will be able to borrow, but as long as they fit the affordability assessment there is no issue with having a mortgage whilst paying for other lending.

AnotherJoe

buel wrote: »

One of my friends has been gifted £9,000. He owes, apparently, £5000 on credit cards and £7,000 on a loan. He asked me if he and his wife are able to get a mortgage whilst in debt. He said they’ve never missed a payment and have very good credit records. Combined income for both is around £55,000 per year.

I thought the chances of him/ them getting a mortgage were very poor but thought I’d check on here first.

Thoughts please?

That would depend. Does he want a mortgage of £50k or £500k?
Also, is the £9k nominal savings he has, all he has?

buel

He says he could get a maximum of £3,000 more from all savings.

He has a child with another on the way so I’m assuming he’d like / needs a two bedroom house for circa £180,000?

DCFC79

buel wrote: »

He says he could get a maximum of £3,000 more from all savings.

He has a child with another on the way so I’m assuming he’d like / needs a two bedroom house for circa £180,000?

Is that how much 2 bed houses go for in the area ?

I'm sure 2 beds can be had for less but without knowing the area or any requirements it's hard to say.

buel

Gosh. I wrote ‘two’ but meant ‘three’.

ACG

Debt in itself is not a deal breaker. If it passes affordability there should be options.

kazwookie

I would suggest you point your friend in the direction of this site, £55K joint salary and with debts, this site would be able to give the friend inspiration to deal with the debt by cutting down / changing supplier etc, then look to move etc.