Already Stressing Out..

DB8519

Hi everyone. Thanks for taking the time to have a read. Me & and my girlfriend have just got the ball rolling with our mortgage advisor and are waiting for an affordability check to come through and I'm already feeling the stress of this whole process, hiding it well from her though.

In a nutshell, we are FTB looking to use the 20% HTB equity loan for our first house. The 2 houses we both love are £255k & £259k. Both 3 bed semis. Unfortunately thats the standard price in our area.

We have 18k saved up for a deposit. Our joint income comes to 50k p/a. Minus the phone bills we don't really have any other outgoings apart from we have a combined 600p/m in car payments coming out which is worrying me. Do you think we will be ok affordability wise? I have full trust in the person we have chosen to help us but its keeping me awake waiting.

My car payments end in September this year, and I'm wondering will lenders take this into consideration?

foxy-stoat

Why are the car payments worrying you, your broker wont waste time finding a lender if they thought it wasn't affordable. They will know basic calculations for this. The lender will take into account your current situation, or the situation when you are due to complete. If you have to wait until September to proceed then that might be what the broker comes back with.

Do you have a plan to pay back the £50,000 equity loan in year 6? I would get the cars cleared and owned outright and put the £600 a month aside to build up enough to at least pay £25,000 at the end of year 5 and a view to remortgage and staircase the rest.