Will I get a mortgage?

Nomoremoney

Hi there, new to the board and I have a few questions if anyone can help please.
Current situation is !!!!!!-approx £25000 of secret debt which is causing me anxiety and stress. However, I am paying it back and should have around 4000 left in 3 years. In 3 years time I’d like to apply for a mortgage, I have a lump sum due to me which will pay quite a large deposit. I will be on 40,000 and will be applying as a sole applicant. I’ve never missed any payments but obviously have a significant amount of debt currently. Will this be taken into account or will the £5000 remaining left to pay be the only money taken into account.
Also, say I wanted to apply for the mortgage in December, would I start applying sooner or just apply in December? Thanks in advance for any help.

MovingForwards

The amount of debt at the time of applying for a mortgage is what's considered.

Any defaults / late payments / missed payments / arrangement to pay / CCJ / IVA / bankruptcy is considered, together with the age of it.

You can't apply for a mortgage until you have an offer on a property accepted, you can apply for a decision in principle (DIP).

Normally it's get a DIP, see how much you can borrow / buy for, look for a property, make offer, have offer accepted, apply for mortgage and keep everything crossed.

A couple of things jump out.

You say secret debt, who you hiding it from?

You say sole applicant. Are you married, living with partner, kids?

Nomoremoney

Thanks for your reply. It’s a secret from everyone, I’m so ashamed. I just want to deal with it without anyone knowing. Living with partner and 2 children. Partner has has huge debt issues in the past and will not be in position to be on the mortgage.

MovingForwards

Does your partner work?

Past debt issues shouldn't stop her being on the mortgage, you just need the right broker to sort you out with the right lender.

Having two kids will see the amount you can borrow reduced, it will be reduced further if your partner isn't working.

Have a play around with a mortgage calculator such as Halifax, and you will see for yourself the difference in mortgage amounts being lent.

Nomoremoney

Partner is also working full time. We have no childcare costs.
His credit rating is low, he is on a repayment plan of such a small amount it will still take years for him to pay back the debt. He also has missed payments from the past on his credit rating although these may possible have dropped off by the time we get around to mortgage. Do you think it’s worth having him on mortgage too or would I just be better on my own?

MovingForwards

Speak with a whole of market mortgage broker, s/he will need copies of all your credit reference agency files and can see what the options are.

Being in a DMP isn't a blocker for getting a mortgage.