1st time buyer, large debt & inheritance!!

lea

Hello

Please can I have some advice. My partner and I have approx 20k of unsecured debt between us, spread over loans, credit cards and student accounts.
We are getting married next year and my partner's parents have told us that an older member of the family has invested money into a policy of some sort and wants to help us buy a house.
I don't really know the in's and out's, but the money in the policy that is for us (about 150k) will underwrite our mortgage and pay it off each month, whilst we get a smaller mortgage for the remaining amount. (We hope to buy a 3 bedroom house, which in our area will be about 190-200k).
I believe they way in which the money is invested, there would be a penalty to withdraw too much money at once, hence why it would be paying off a proportion off the mortgage each month rather than be used as a large deposit.
My question is will we be able to get a mortgage with our current debts? Our plan would be to use some of the 150k to pay off the debt then use the remaining amount for the house, but this cannot be done due to the withdrawal penalty.
Can anyone offer any advice? I earn a basic salary of 13,300 and my partner earns 15,600, but with bonuses there is potential to earn up to an extra 5k each a year.

Sorry for being vague-I know nothing about mortgages or investments!!

Thanks,
Lea

herbiesjp

How much are they going to withdraw without penalty - would it be 5% for tax reasons? That would equate to an extra £7500.

Let us know if this is the right figure we should be looking at?

lea

Hi

I'm not sure on the % but I know they did say it was for Tax reasons.
Does this help at all? Sorry for being so vague, I don't really understand it.

Thanks again.

Lea

Stonk

Make sure you to speak to a person about your special circumstances, rather than a computer (or, equivalently a mortgage monkey who enters your details into a computer and reads its answer back to you). That may well rule out a lot of ordinary lenders! A computer is gonna say "no" when you try to borrow that much, whereas if they thought about it a bit they'd realise you can actually fund the mortgage.