Pay off debts before mortgage?!?!?

Joe_Bloggs

Prove to yourself that you can save £500 a month each. From what you have said you are £4000 each in debt (£8000). There are many mortgage advisors out there who will say that affordability is the new lending criterion rather than income multiples. As a non-financial advisor I would advise you to condider trying to save your money. Clearly saving for things would be a new experience with the ultimate reward being a lower mortgage interest rate due to having a significant deposit and no debt. The housing market stagnation is in your favour at this time, so make the most of it.

Interest paid on a property you are supposed to own is 'money down the drain'. For example a £120K mortgage at 4.75% over 25 years will cost £85K in interest over the term. Only by year 11 will capital paid back per year be more than the interest charged, in a repayment mortgage situation.

J_B. (Build your income, consider training courses to advance career prospects.)

MORPH3US

Thanks for all the suggestions and advice guys. I intend to book in to see a mortgage advisor in the next few weeks and see what their advice is.

M