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Likelihood of a mortgage with outstanding loan?

(2 Posts)
Greyhorses Thu 27-Jun-13 19:30:36

Hi everyone.

This is just musing really as we won't be ready to buy anything for at least 2 years if at all. Hopefully OH will be ready by then but that is another story.

How likley is it we would be able to get a mortgage with outstanding debt? The debt is approx 20000 spread over two cars, we have 4 years remaining to pay at £400pcm. This is the only debt we have and are living with parents at present rather than renting.

Salary one: 21500
Salary two: 15600

Halifax mortgage calculator is saying around 125k availability, but will a loan go against us?

Also, would paying some savings off the loan help our cause or are we better off having savings? We have approx 4k we could pay off the loan however the interest was front loaded so paying capital from September as we have paid the interest.
If we pay off 4k will it reduce the monthly payment or the loan term? (It is a bank loan)

Thanks!

Mum2Fergus Thu 27-Jun-13 19:42:37

Loans/debt don't go against you as such...but all the payments/repayments will be considered when your application undergoes the affordability criteria.

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