Will I get a mortgage when I'm in debt?

ddoll32

Hello, 
Just wanting a bit of advice. 
My partner's family have very kindly offered us around £20k as a deposit for a house.
I'm earning around £33k and my partner £27k so we'd be able to borrow enough. However, I'm paying off quite large debts- around 18k- around £375 each month. I haven't ever missed any payments but am wondering if lenders would be reluctant to lend if I already owe this much? Apart from this debt, my credit score is great. 
Obviously the sensible thing to do would be to wait until I'm debt free (around 4 years time) but we feel like renting is just wasted money.
Thanks in advance. 

Caz3121

it could affect affordability and reduce the amount you can borrow
If you try one of the lenders mortgage calculators you can see the impact

520d2012

Hi - 1st time posting, but based on my own recent experience, that level of debt shouldn’t be a issue. I succeeded in getting a approval for £200k on a £50k income with £20k unsecured debt earlier this year with the condition that I pay off £4K by completion. This was made up of 2 x cc’s and 1 loan.
I had a deposit of 20% though from my sale and some savings (2k)
The issue you may have is with the gifted deposit as this with some lenders cannot be more than 5% of the property value or make up more than 50% of your total deposit.

comeandgo

You should get a mortgage but that is a lot of debt, it will be taken off the mortgage amount you would have got.  Credit score does not matter, the amount will.

Thrugelmir

ddoll32 said:

However, I'm paying off quite large debts- around 18k- around £375 each month. 

What form is the debt? 

ddoll32

A couple of credit cards and a loan. 

RelievedSheff

As others have said you should get a mortgage with that level of debt but it will effect the affordability and the amount that you can borrow.

bamgbost

As other said, it all comes down to how much you want to borrow.

The more you need the less likely you will be accepted.

Plus it depends on your circumstances too. e.g. If you have 2 cars, have 2 kids, etc. These are additional outgoings that will affect your application.

ddoll32

Thank you everyone. 
No kids or cars on finance so 🤞🏻 

Bex_27

I'm thinking the same thing. I have a loan of £4000, we have cars but they are like £4000 in total and I have an overdraft. I am aiming to pay off either the loan in full or part of the loan and all of my overdraft. We are just doing a DIP now as we are getting a lump sum from a settlement in the next week or so. My MA seems confident we will get it, we have a similar income to you both. I'm a nervous wreck, we have fair and poor records, although the poor one is almost at fair. 

amnblog

£20K deposit suggests maximum £200,000 purchase price and £180,000 borrowing.
£60,000 income should eat £180,000 of borrowing but the debt will trip you over with some lenders, particularly if you need to borrow above £113,000.
Use a broker.