Advice please!

philt07

Hi

I need some general advice on how existing debts effect mortgage applications.

To explain thanks to an ex-girlfriend I am left with 12k on a loan and 3.5k on credt cards. She has also cleaned me out of my savings bar a few hundred pounds.

As I am going to be left with this debt for a while I am worried about how it effects my mortgage prospects.

Am currenly at home with my folks but as they are moving away I need to get a property of my own and want to apply for a mortgage. What I want some advice on is how mortgage providers look at these debts. In particular

1) Is it better to get a single loan of £15.5k over say 5 years to consolidate the debt (I can afford the repayments) as I'm on a good salary or is it better to leave the debts separate?

2) Are mortgage lenders more soncerned about the amount you owe or the amount you are paying back each month or is there no difference to them?

Grateful for any advice anyone may have.

Phil

Joe_Bloggs

There are so few figures to work with here! ( No interest rates, salary, property value). Most lenders that will give you a good mortgage rate require a deposit or some equity to put in the property (5% of price is a minimum for many). Unfortunately you have less than nothing at this time. It might be a good Idea to go through Martin's advice here.
There are some lenders who have a relaxed almost carefree attitude about any existing debt (Northern Rock perhaps). Get hold of your credit reports and find out what accounts are out their and instruct the credit reporting authorities to break any links with between you and your ex if it makes sense to do so. You may owe more than you know.
The Debt Free Wanabee section is a start to fine tuning the advice and turning the situation around. Could your folks help you with a deposit or act as guarantors until you can remortgage on your own terms.
J_B.