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Mortgage affordability: outstanding debt or repayment rate?
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Herzlos
Posts: 15,890 Forumite
I'm looking at a house but falling short by about 10k in terms of affordability since I have a lot of debt. The affordability checker only seemed to care about my outgoings rather than the balance.
My plan is to hammer the debt, but am I best targeting the most expensive to bring the debt total down, or focus on getting my payments down?
My plan is to hammer the debt, but am I best targeting the most expensive to bring the debt total down, or focus on getting my payments down?
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Depends on lender and type of credit.
Loans are typically "taxed" the monthly payments. Card debt is taxed at 3% of the balance or 5% of the balance depending on the lender.
You tried more than one lender's affordability calculator?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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