First Time Buyers but Partner has debts

Phunky

Hi, im hoping someone might be able to help me and my partner out - we are both young professionals (mid 20s) and have been renting together for over 3 years now.

We have both been talking about looking at buying our first house but neither of us have any clue about anything to go with mortgages and such.

Now we have a joint income of around £50k a year and no real savings, but we plan to start saving and would look at buying once we have around £5-10k to put down.

Our main concern is that we both bring debts with us myself with around 6k and my partner with quite a bit more (15k+) which she has been slowly paying off for 3 years.

I'm guessing my partners debts will give us a bit of trouble with our application so i was wondering if it would be best for us to apply as a joint or single application?

Also any other general help and advise for a couple of FTB would be great

thanks in advance

UK007BullDog

The property price will dictate if one or both of you will need to be added to the application.

The debts will work against you both. I suggest paying off the debts as quickly as possible, then start saving for the deposit.

MortgageMamma

The debts are only important if they factor in on the affordability calculation. HOw much do you wish to borrow?

neverdespairgirl

What type of debts? Are some student loans, for example?

Phunky

We have both been actively paying off our debts for the past few years now and have it more then under control.

From what house we have seen in our area - looking around West Yorkshire so between Bradford and Bingley (pun intended!) - we think we would need between £115-130k Max!

I personally would like to keep it under 120k but sadly cant find anything in Bingley for that price range.

Am i correct in thinking that saving for the deposit would really be are biggest asset for the time being?

I've started planning a new budget around the idea of putting aside cash for the deposit but it would take away extra monthly payments to my debts.

Phunky

neverdespairgirl wrote: »

What type of debts? Are some student loans, for example?

I wish, sadly my debts are from a few stupid drunken months when i was 19 with my first credit card and my partners are a mix of loans and card debts also mounted up from her younger days.

MortgageMamma

I used to live in Cross Hills in West Yorkshire, its nice there (and property is cheap). Where I live now (East Sussex) the wages are very similar to that of Yorkshire/Lancashire but the property prices are almost double. We actually considered moving back to the Colne area to get on property ladder but we love it here. What are your incomes and how much are the monthly payments on your debts?

Phunky

MortgageMamma wrote: »

I used to live in Cross Hills in West Yorkshire, its nice there (and property is cheap). Where I live now (East Sussex) the wages are very similar to that of Yorkshire/Lancashire but the property prices are almost double. We actually considered moving back to the Colne area to get on property ladder but we love it here. What are your incomes and how much are the monthly payments on your debts?

Yes, i work in Steeton and the property past Bingley (heading towards Lancaster) does start to get very cheap but the other half really does not wish to go past Bingley.

Although im sure if we found the right place she would - the other problem for us is neither of us drive so need to be near train lines, which of course means increase in price!

MortgageMamma

Steeton, thats near Airedale hospital isnt it? (sorry I am orig from Manchester I just married someone your neck of the woods)

If you give me your earnings vs outgoings I should be able to comment on your general affordability. Unless you are a doctor, vet, accountant, solicitor you wont be able to get a 100% mortgage, as they have all disappeared

UK007BullDog

To be able to help you with figures you need to tell us your incomes before tax and the amounts of debts you have. Without that info we are blind.

Phunky

MortgageMamma wrote: »

Steeton, thats near Airedale hospital isnt it? (sorry I am orig from Manchester I just married someone your neck of the woods)

Yes thats correct - i'm a web developer for a Mobility company based just behind Airedale hospital.

My other half is in Finance but is not full qualified at the moment so as you state i doubt we could get a 100% mortgage.

I have around £500 and my Partners has around £600 after all our outgoings.