Mortgage advice please

wozzza72

Hi all


I am starting the process of buying my council house under the Right To Buy scheme.


House value: £250,000
Discount: 35% / £87,500
Under valuation by council: £-10,000
My deposit: £20,000

Mortgage required roughly: £132,500
Equity in house: 117,500

I have a loan with just under £10,000 left to pay running until Sept 2022 and a credit card with £5,000 on but being paid off monthly, aiming to be cleared the same month as the loan.

Taking the above figures into account, would mortgage companies need me to be paying the loan and card off before I would be offered a mortgage?


Thanks

foxy-stoat

What is the annual salary?

haras_nosirrah

Hi
It would depend on income. For right to buy a lot of lenders don't require your own deposit so could potentially use your deposit to clear the debt however this would depend on your income as to whether this would be a requirement or not

wozzza72

How did I miss that bit off??



Together we have an annual income of £50k.

haras_nosirrah

Sounds fine to me without needing to clear commitments.

Get your info to a whole of market broker. If you don't know of one then read through the boards and pm a broker from here you feel is helpful. While the brokers are not allowed to pm people we are allowed to respond if people pm us for assistance.

wozzza72

Many thanks for the advice, much appreciated.


Could you roughtly let me know what the monthly payments would be on a mortgage of £130k with the sort of equity I will havein the house, over a 20 year period.


Thanks again

haras_nosirrah

as a guide on a 5 year fix - around 640
a 2 year would be cheaper but a lot of my clients on right to buy do 5 year as they can't sell for 5 years without repaying the discount