What are the chances? Worrying times.

anonandy

Hi,

To summarise me and my partner are splitting ways and our house is being sold (hopefully) so we can both move on in life. She will get more equity from the house as she put in more initially, but swings and roundabouts my salary is much stronger so we are both hopefully going to be okay getting our own places. I have mortgage meetings next week but it is driving me mad trying to guess what the situation is going to be, and I know there are loads of good mortgage advisors on here offering advice. I basically want to know what my chances of being offered a mortgage are, as I'm very pessimistic in these challenging times and it's really getting me down not knowing.

Currently I earn £41,000 and my net pay is normally £2380ish, in the next month or two I'll finish repaying my student loan (currently £180 per month) so that net will go up. I have £7000 odd in credit card debt and pay £403 a month for a PCP car finance. Currently I normally have £300 left over at the end of the month including all bills and mortgage and a rather lavish, carefree lifestyle which has now stopped instantly since this situation started! I expect over the next month I'll have around £600-700 left at the end of the month and hopefully continue that. I believe my credit score is good from my last time using Equifax around 3 months ago, I don't have any missed payments.

The properties I'm looking at downsizing into are shared ownership as I won't get much else for my situation. I'm hoping to get a mortgage for £100,000 (rent/service charge on these properties is an additional £350pm approx).

My specific questions are:
Am I likely to get any mortgage offer if I don't clear that credit card debt? If not, how much debt do you think I'd need to remove to potentially attract an offer?

If I clear the credit card debt, what is the lowest my deposit could be for such a mortgage? If I clear that debt I may only be able to scrape between £4k to MAYBE £10k for a deposit and buying fees (selling fees are being removed from current equity).

Should I close unused credit card accounts? I probably have access to something like £25k on credit cards but the accounts are dorment following balance transfers.

Thanks for any advice offered, I know it's pretty word heavy, but I appreciate any info. I'll try and update when and if I receive a mortgage offer to help anyone else in a similar situation.

ACG

I do not do shared ownership so this is just generically speaking, you could probably get a mortgage of up to £160,000 fairly comfortably. With the rent from the shared ownership that will come down but I imagine £100k should be achievable.

Having debt in itself is not a deal breaker and having unused credit cards is also unlikely to be a deal breaker so it would just be a case of personal preference.

boomer69

OP you're on a similar take home to my son , he got a mortgage broker to search and he got offers in principal for £160k.


He "only" needed £120k and got a five year fix close to 2% from Halifax.