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Pay off debts before mortgage?!?!?

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Comments

  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    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
    MORPH3US Posts: 4,906 Forumite
    1,000 Posts Combo Breaker
    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
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