buying a house please advise me!!

daveyliver

If the questions are answered elsewhere I do apologise. Heres my situation, my partner has £60,000 pounds deposit for a new house and is willing and eager to put this down as a deposit. I myself am in not so good shape. I owe a credit card £7000, my father £6,500 and my bank loan £8,000 (really stupid I know!) my credit score is excellent according to experian, my fathers loan obviously is interest free, my credit card apr is 12.9% pa, and my loan is 6.4% with 5 years left (I know this is a good rate cos they keep harrassing me to borrow further money at 8.9%) I currently pay my father £500 a month (agreed with him when I borrowed the initial £12,500) my repayments for the bank loan is £158.66 a month, and i try and work extra hours to cover the credit card. Even though my credit report is excellent I was refused a loan from sainsburies bank (lowest at the time) to pay off the credit card, as I am looking to buy a house, I do not want to keep applying for loans or balance transfers because if i do and get rejected it affects my credit score, I currently take home about £1,100 per month and my only outgoings are what debt iv got and £120 per month child maintenance and £100 per month keep to my parents. I could not and wouldnt ask for my partner to pay up for my mistakes and even if she did it would only get us a house similar to the one she sold which, if your trying to better yourself is not the answer. any advise would be gratefully recieved. thank you.

IDN101

You haven't said much about your partner's situation- debts, income, etc? (I'm not prying- it's just that buying a house together- you have to really consider both set of circumstances)

Is it possible she will take out the mortgage in her name alone for the first couple of years- then when you remortgage you could THEN get a joint one- after you're other debts are paid off?

Also: How much are you looking to borrow- this will tell us a bit more about the repayments and whether you can afford them between you.


One thing you will realise when you get your own home: Just what an EXCELLENT BARGAIN £100 a month was for domestic expenses!!!! You'll never get that kind of deal agin I'm afraid!

Regards,
Ian

betti911

Would your partner and you be splitting bills equally? Could you afford to do this? If so from what you are saying you will find that you won't have terribly much money to live on.

Would it not be a better idea to get some of your debts paid off first before investing in property? Is there an urgent need for you to buy at this present moment in time?

I speak from experience as I bought nearly 2 years ago, carrying previous debt and I've had to change my life completly to manage my debts. If I had to do it all again I would pay off my debts before getting involved in property.

Why don't you go onto the Debt Free Wanabe forum and post whats called your 'statement of affairs' and see if you can reduce any of your outgoings?

homer_j_3

daveyliver wrote: »

If the questions are answered elsewhere I do apologise. Heres my situation, my partner has £60,000 pounds deposit for a new house and is willing and eager to put this down as a deposit.

I myself am in not so good shape. I owe a credit card £7000, my father £6,500 and my bank loan £8,000 (really stupid I know!).

My credit score is excellent according to experian, my fathers loan obviously is interest free, my credit card apr is 12.9% pa, and my loan is 6.4% with 5 years left (I know this is a good rate cos they keep harrassing me to borrow further money at 8.9%) I currently pay my father £500 a month (agreed with him when I borrowed the initial £12,500) my repayments for the bank loan is £158.66 a month, and i try and work extra hours to cover the credit card.

Even though my credit report is excellent I was refused a loan from sainsburies bank (lowest at the time) to pay off the credit card, as I am looking to buy a house, I do not want to keep applying for loans or balance transfers because if i do and get rejected it affects my credit score, I currently take home about £1,100 per month and my only outgoings are what debt iv got and £120 per month child maintenance and £100 per month keep to my parents.

I could not and wouldnt ask for my partner to pay up for my mistakes and even if she did it would only get us a house similar to the one she sold which, if your trying to better yourself is not the answer. any advise would be gratefully recieved. thank you.

Sorry, I just wanted to break up your query so its easier to read.

Firstly, have you told your OH about your debt? If so, I would explain that you are in debt and that you are not wanting to start your first home together with a shed load of debt hanging over you. There is no shame in having debt if its affordable and you are repaying this back. It is not like you have run up the debt, not paid it and are facing bankruptcy etc.

Secondly, you have said that you bring home £1100 p/m with outgoings of £830 - should you move away from your parents. This leaves you less than £300 to play with.

How long do you have left to pay your parents the £500?

neverdespairgirl

homer_j wrote: »

How long do you have left to pay your parents the £500?

OP said he still owed £6.5k, so 13 months.

homer_j_3

good spot!

So by that token, I would say that you are probably about 2.5 years away from repaying your parents and credit card off.

To be fair, this is a long time if you are ready to move now but you cannot afford to move out of home at the moment and would discuss this with your partner. They may offer to help, they may say that they will buy and then you can come on the mortgage at a later date when you have cleared your debts

daveyliver

My oh earns the same as me but owes nothing, maybe im just best trying to pay my father and credit card as much as possible. We were hoping to get a mortgage for £90,000 that would get us a 3 bed semi in a decent area round our way (£150,000). My partner knows wot debt im in, and I think we should just wait till the end of the year and re-evaluate and just hope house prices stay as they are or even go down. Many thanks for the replies.