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Savings & Debt or No Debt & No Savings - Mortgage Application
Riorio
Posts: 5 Forumite
Hi!
Im looking for some advice. My partner and I are looking to buy a new house. I own the house we live in with a mortgage. I have no debt, but was previously in a DMP which I paid back in Nov 19 in full. My partner has never had a mortgage.
We are looking to buy together and either port across my current mortgage or get a new one from a new provider.
The question we have is, at the moment by partner has around £17k debt, but has £3K savings. I have no debt and £6K savings. Would it be best to use our savings what we have now and over next few months to pay off my partners debt, then apply for a mortgage, but have no savings. We would use the £40K equity in the house so have 20% deposit for the house we want to buy. Or do we keep the debt active and use our savings to put towards the deposit.
As I was previously on a DMP I'm not sure what mortgages will be available. My current provider is Coventry Building Society, so I will probably speak to them first.
Hope that makes sense!
Im looking for some advice. My partner and I are looking to buy a new house. I own the house we live in with a mortgage. I have no debt, but was previously in a DMP which I paid back in Nov 19 in full. My partner has never had a mortgage.
We are looking to buy together and either port across my current mortgage or get a new one from a new provider.
The question we have is, at the moment by partner has around £17k debt, but has £3K savings. I have no debt and £6K savings. Would it be best to use our savings what we have now and over next few months to pay off my partners debt, then apply for a mortgage, but have no savings. We would use the £40K equity in the house so have 20% deposit for the house we want to buy. Or do we keep the debt active and use our savings to put towards the deposit.
As I was previously on a DMP I'm not sure what mortgages will be available. My current provider is Coventry Building Society, so I will probably speak to them first.
Hope that makes sense!
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