Applying for mortgage with debts. Help needed please.

van22663

Hi everyone,

I am tied in for another year with a sub prime lender. I had to have a self cert mortgage as alot of my income is made up of several jobs and benefits.
I am determined to try and get away from the sub prime market and hopefully the self cert situation, as I know it limits my choices.
However, I have arrangements in place with several credit card companies to pay a reduced amount. This is because, my mortgage is so high that it takes every penny at the moment.
I have heard that having alot of debt will reduce my affordability for a mortgage, i owe £25,000 on 5 cards.
Should I be going all out to try and clear my cards or are there any mortgage companies that would consider me, i am not sure how it works anymore.

Any advice would be greatly appreciated.

chappers

Yes if possible you should be trying to reduce your credit commitments to increase your affordability.
If your employment status was the only reason for your mortgage rate being so high and you can now satisfy the criteria for a more mainstream loan then your affordability will increase anyway due to paying a lower interest rate, assuming you will, bearing in mind the way mortgage rates are going.