1st time buyer, 100k deposit, 20k debt. Will we get a mortgage?

nintyzelda

My husband and I are looking to buy our first home, we have 100k as a deposit. This was inherited when my father in law died. My husband has no debt. I have just under 20k in debt ( 12k loan, 7k credit card) I have never missed a payment on either and pay more than the minimum payment on my cc each month. We have always gone into our overdraft every month, just out of habit. We could easily clear our overdraft without an issue and lower it. We have had a mortgage in principle from our bank. We have had an offer excepted on a house and now need to go to the bank for an actual mortgage but now I am terrified we will be refused. 

MovingForwards

What's your income?
How much is the property you want?

nintyzelda

Our joint income is 32k a year, the house is 225k

Thrugelmir

Will your husband clear your debts for you? Sounds as if your debts exceed your income. 

nintyzelda

We also have an additional 48k in savings, it is my husband's inheritance. We have lived beyond our income mainly because we have this extra money. I worry that the bank won't lend to us while I have debts, I guess my husband would clear it if it was stopping us getting a mortgage. I just feel bad as it is my debt if you know what I mean. I don't want to apply for us to get knocked back and then have to start again. I think it sounds like the best thing to do is clear some more debt first.

ACG

Affordability sounds a little on the tight side, but if you are passing the DIP it sounds like it has passed. 

DCFC79

You really should avoid not going into the OD, it can get recalled by the bank.

dimbo61

Overdrafts are now becoming very expensive debt so try and live within your means and stay out of your overdraft.

foxy-stoat

Why not use savings to clear debt and live within your means, if your worried about getting a mortgage, you can always rack the debt back up to £20,000 if it makes you feel better after you complete.

gj373

So...you have circa £150k in savings but a credit card / overdraft debt of £20k? That doesn't make much sense. I take it your husband doesn't know about the credit card debt?