Need Advice : Managing £15k Debt While Buying a House

FrancisBegbie

Need Advice: Managing £15k Debt While Buying a House

Hi all,

I’m in a bit of a tricky financial situation and would love some advice.

I’ve just accepted a new job starting in February with a £45k salary, plus the potential for two £1,000 bonuses each year. While this is great, I currently have £15k in credit card debt spread across four cards:

• Two are already on interest-free deals ending in 2026.

• The other two I plan to transfer to new interest-free cards (also until 2026).

I know I won’t be able to pay the full debt off by 2026, so my plan is to keep transferring the balances to new interest-free cards when these deals end. My debt is a secret, and I can’t let my family know about it.

Here’s where it gets more complicated: my family has set aside £40k as a house deposit for me, with the condition that I must buy a house in the next six months.

I’m stuck trying to figure out the best approach:

1. How can I manage this debt long-term? Will I run into issues transferring it again in 2026?

2. How do I juggle this debt while taking on a mortgage?

3. What’s the most effective way to reduce my debt without jeopardizing the house purchase?

Any advice would be much appreciated!

Thanks in advance!

martinbainbridge1975

first thing that I would look at is talking to a mortgage broker and get some advice, to see what options are available.  it may be possible to get an agreement in principle for a mortgage.  one thing that is likely to is the debt will reduce how much you can borrow.

one thing you may be advised is not to apply for any credit until mortgage applications are completed.

starting a new job may mean waiting till any trial period is over and you are established in the new role

ManyWays

1. How can I manage this debt long-term? Will I run into issues transferring it again in 2026?
Plan on paying it down. No one can know what the 0% offers will be like next year or what your affordability will look like after buying a house.

2. How do I juggle this debt while taking on a mortgage?
Talk to a broker, I cant imagine that 0% deals taken now will be more of a problem for a mortgage than card debt you are paying interest on, but get advice from an expert

3. What’s the most effective way to reduce my debt without jeopardizing the house purchase?
Have a very frugal 6 months and overpay it? pretend you are till on your old salary. Are your family happy for you to use the 40k for house purchase costs (conveyancing, stamp duty, moving) or do you need to save those up?  

MEM62

FrancisBegbie said:

Here’s where it gets more complicated: my family has set aside £40k as a house deposit for me, with the condition that I must buy a house in the next six months.

Very strange that you family would, on one hand, seem to be being generous with offering the cash and, on the other, attaching a draconian condition to it.  Your debt will have an impact when any potential mortgage lender looks at affordability.  (I am going to assume that you have no other savings or you would have used those to reduce your debt)  Maybe the best thing to do is to explain your circumstances to your family and see if they will modify the terms of their offer. 

born_again

You really should not bank on getting further interest free deals in the future.

You really need to focus getting the debt down as fast as possible, as it will have a major effect on affordability on any mortgage.

You need to set up a Statement of Affairs to see where you can cut down on your spending.