Mortgage with debt

Lucielou1

I have just paid off a huge chunk of debt but this is what I ll be left with. I am I likely to still get a mortgage. 

Joint earnings £70k
deposit £115 ( equity in current house)
want to borrow £195 
£6000 on credit card
£18,000 loan 
2 x car pcp £ 200: £240 a month 

many thanks 

Carl2510

Try an affordability calculator that will give you some idea.

foxy-stoat

I would use some of the equity on completion to clear the £18,000 loan and have a slightly higher LTV if the affordability doesn't stack up.
What did you spend £18,000 on and £6000 on the card (as well as paying of the large chunk of debt) when you have 2 cars on PCP?

gj373

foxy-stoat said:

What did you spend £18,000 on and £6000 on the card (as well as paying of the large chunk of debt) when you have 2 cars on PCP?

Not really relevant what the OP spent it on. Is it?

foxy-stoat

gj373 said:

foxy-stoat said:

What did you spend £18,000 on and £6000 on the card (as well as paying of the large chunk of debt) when you have 2 cars on PCP?

Not really relevant what the OP spent it on. Is it?

It is if the answer was - !!!!!! it away on holidays, drugs, drinking, eating out, brand new electricals and gambling.....

Home ownership probably isn't for them if that was the case.

I think your questioning isn't relevant either.

[Deleted User]

gj373 said:

Not really relevant what the OP spent it on. Is it?

If OP goes for a mortgage interview then they should expect to answer questions like this to try pre empt the same questions from the lender.  Plenty of lenders will throw out cases where clients keep adding debt even if its affordable at the moment.  
I just had one with a high street lender thrown out for this exact reason,  it fit affordability just now but underwriter wasnt happy with the loan taken to consolidate debts and then more debts accruing since then.

Perhaps not a question OP wants to go in to on a public forum but a perfectly relevant question to an advised process

Lucielou1

The loan was spend on are old house it needed a lot of work when we moved in. It has now increased in value and we want to move up. I was previously working part time as well but have been full time in much higher paid job for last year which has meant we have been able to pay off previous debts. This is what I m worried about that it will still be declined even though affordability we can afford because of the previous debts. There are no ccj, missed payments or defaults. 

[Deleted User]

Lucielou1 said:

The loan was spend on are old house it needed a lot of work when we moved in. It has now increased in value and we want to move up. I was previously working part time as well but have been full time in much higher paid job for last year which has meant we have been able to pay off previous debts. This is what I m worried about that it will still be declined even though affordability we can afford because of the previous debts. There are no ccj, missed payments or defaults. 

If it was to fund improvements to a home then I doubt it would be a problem to 99.9% of lenders.   The example i gave was around serial debt consolidators.  

Based on the numbers you have posted here I dont think it will be a stretch to get £195k.  Generally 4.5-4.75x income is realistic.  It might reduce slightly depending on the loan repayment that is unknown and also your ages as a lower term will reduce your borrowing amount

Lucielou1

We re both 37 looking at 23 year mortgage as that’s what currently have. Loan repayments are £280 a month. When I ve gone through a lot of calculators they all say we can borrow a lot more than 195 even with the debt we have. do you think there being to generous.