Mortgage lender for people with debts

andy_geo

I am moving home and I am trying to secure a mortgage. I have quite a lot of debt (personal loan and cards) and the major banks will not approve it.
Are there any suggestions on how to proceed? Any suggestions on lenders that could potentially accept me?

~Andy


 

MaryNB

The Mortgages & Endowment  board is more suited to your query.

Tiglet2

Aldermore and Precise come to mind

stressedout45

We were still paying off a personal loan when we last moved house.  And managed to secure a mortgage with no issues with one of the major lenders.  I don’t see why there would be an issue if you are managing to pay everything and have enough to cover the new mortgage payments every month? 

AdrianC

stressedout45 said:

I don’t see why there would be an issue if you are managing to pay everything and have enough to cover the new mortgage payments every month? 

But why not pay it down faster, then there's no issue come time to move?

You can't look at your assets and debts in separate pots. If you have £10k equity saved up and £15k debts, you have -£5k.

MaryNB

stressedout45 said:

We were still paying off a personal loan when we last moved house.  And managed to secure a mortgage with no issues with one of the major lenders.  I don’t see why there would be an issue if you are managing to pay everything and have enough to cover the new mortgage payments every month? 

They might be able to afford the current payments but could fail the stress test. My bank checked if I could afford my repayments if the interest rates rise substantially after the initially fixed rate term. Also if any of the loans were taken out recently that could be an automatic decline regardless of affordability. My friend had very good finances but was refused a loan he could more than afford because it was just after he remortgaged. His bank wouldnt approve a major credit application right after another.