First Time Buyers but Partner has debts

MortgageMamma

sorry I should have explained its your gross annual earnings I need before outgoings

And your monthly credit commitments x 12

I am off to bed now as really tired, but will check this tommorow and hopefully help you out

Lisa

Phunky

UK007BullDog wrote: »

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.

Mine is 24k pa with around 6k debts and my partner is on 26k but i'm unsure of her total debts but it is alot more than mine, around the 15k+ mark.

UK007BullDog

Just to let you know there are no more 100% mortgages for non professionals.

MortgageMamma

can you let me know what your monthly payments are? assuming you have a 5% deposit I think you will be ok, but I'd like to be more specific if possible

Tom_Williams

I am in a similar but not identical situation, I have debt which I have been paing off as quickly as possible and quite rapidly but I am also looking at buying with my girlfriend.

I have said to her all along that I am going to clear my debts before even applying for a mortgage. I know that bringing 6 or 7 thousand pounds worth of debt to a mortgage application will not work at all.

Tom

ixwood

Save, save, save!!

Now's not a good time to buy, especially if you're struggling for a mortgage. Live cheap and save for a year and you'll be in a much better position all round.

herbiesjp

With £20k of debts in the backgorund, is it wise to look to buy a £120k property with a minimal deposit?

Your income may well be high enough to support that kind of total borrowing, but it may well be more cost effective for you trying to reduce the debts as much as possible and try to save for a bigger deposit.

100%, and to some extent 95%, mortgages are getting harder to find which must mean the lenders are seeing these levels as being too risky - so you have to ask yourself why? Do they see house prices going down? Would that leave you with a property in negative equity when you came to re-mortgage, which would mean being stuck with your current lender on possible unattractive deals?

I think this would need a lot of thought - without the debts in the background you could potentially overpay and reduce or lessen the possibility of negative equity, but with £20k debt it gets more difficult to do that

homer_j_3

Phunky wrote: »

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!

My wifes parents live in crosshills and its nice place to live. The only issue is there isnt a train station there yet. I understood there was talk about one but not sure what happened with that.

I have done a quick right move check and crossfalatts, riddlesden and that area are probably the place you are looking at if you want to be on the train line into steeton.

if you go much past Crosshills, you will see increase in price as you head to Skipton.

neas

Phunky wrote: »

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.

I used to live in Keighley, grew up there... fortunately houses arent too badly priced there (Have been rising in last few years though... not as bad as london tho).

When you talk about income do you mean gross or net income? I.e after or before tax and student loan deductions?

How'd she manage to get 15k of debts as a student... i dont know lol. I thought they wouldnt lend such an amount to a student at uni.

How much student loans do you both have as well? These will surely knock your incomes down by 2k combined a year at least.

Phunky

neas wrote: »

How much student loans do you both have as well? These will surely knock your incomes down by 2k combined a year at least.

Neither of us where students the debts are just from young mistakes, i've been slowly paying off mine for the past couple of years and also got my partner to stop ignoring her's and start the long road of paying it all back and getting on top of her finances.

A lot of you're comments have confirmed my thoughts about keeping on as we are now and lowering our debts while also putting aside money for the deposit.

Its going to be hard as we are starting to get ichy feet and there been the whole talk of "starting a family" which we both feel should be done in a home of our own.

Thanks for all the advise has certainly got me thinking a bit more about things!