Do debts matter if affordability shows ok

Gaz012012

Hi, Wonder if anyone has any views on this.
FTB looking to buy asap. Buying with partner and combined salary is 82k, looking for property at 150-200k, with current debts initial calculators have shown figures should be ok.  However, whilst affordability is ok will my debts impact on offers? Im interested in thoughts as to should i pay debts off or now focus on saving for deposit?

Debts are 10k on credit cards, 5k on a loan with monthly payment of loan at 330.

I have added these figures into the calculators and looked ok still, but would Lenders potentially still decline due to the debts?

[Deleted User]

cant see those debts being a massive issue.  Some lenders have Debt to Income ratios and occasionally it can trip people up who have expensive cars on PCP as the background total loan figure can be massive

Unless your loan is for £40k+ then I wouldnt worry about the debts themselves

Gaz012012

Thank you. Meant to add deposit will be low as needing to move as soon as not sure if that would impact. Loan is 5k.  Was considering just taking out a new loan to keep as one

RelievedSheff

We have several credit cards with balances totalling about £16k as well as a car loan and we have just managed to get a mortgage nor problem. So long as they don't trip you up on affordability, which it doesn't sound as though they will, then you should be ok.

Gaz012012

Thanks Guys. From what i have read they will use the monthly loan figure for the loan and a % (5%?) of the outstanding card debt. Would it therefore be prudent to put all one one loan, over a longer term to assist with affordability?

Biscuit31

Going on my experience then no it won't be an issue.  Have circa £15K of credit card debts and £8K on loan.  Have just been approved on a mortgage with a high street bank

Gaz012012

Thanks. Im just thinking if having all my os debts on one loan with a lower repayment would improve affordability but also allow me to save for a depost quicker?

K_S

Gaz012012 said:

Thanks Guys. From what i have read they will use the monthly loan figure for the loan and a % (5%?) of the outstanding card debt. Would it therefore be prudent to put all one one loan, over a longer term to assist with affordability?

@Depends on whether you are currently coming up short on affordability or not.

Gaz012012

I would have thought it would take into account how long is left on the loan, ie 4 payments left or 7 years. The calculators dont appear to but wonder if it does on an actual application 

K_S

Gaz012012 said:

I would have thought it would take into account how long is left on the loan, ie 4 payments left or 7 years. The calculators dont appear to but wonder if it does on an actual application 

@gaz012012 It will not always ask for or reflect in the calculator but some lenders will disregard commitments due to end in the next X months.