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Advice about debt/mortgage please - am clueless!

(5 Posts)
Sillyjelly Wed 05-Jul-17 11:07:10

Hello,

I have some fairly simple questions, but I don't have anybody in my life I can ask about adult financial affairs!

I have no partner, no kids, currently living in family home.

I inherited my parents house with a sibling which is soon to go on the market for ~250k.

I earn about 21k p/a - this won't go up dramatically in the future as I have chosen a sector I love but doesn't pay well (am 30 years old)

I have 2k in credit card debt from buying a car and driving lessons (soon to be paid as will be getting 2k soon)
I have 4k in post-grad debt which I'm paying at £200 p/m and have less than 2 years left on.

I want to buy a house, I'm estimating (based on nothing) that after sale/legal/moving fees etc.my remaining share of my parents house would be around 110k, is this realistic?

Based on that number my budget for a house is £170k - is this realistic?? I am in East Anglia so there is really nothing decent available for much less anywhere near work.

Should I pay off my debt before buying? I don't want to as it's so short term and not a burden financially, and I'm aiming at as small a mortgage as possible, but I don't know if I'm being foolish. I have a very good credit rating.

Any advice greatly appreciated! I will go to a mortgage adviser soon but I want a clear idea before going so I'm not bamboozled or disappointed.

Thanks! smile

19lottie82 Wed 05-Jul-17 11:55:18

That sounds OK OP, your debt isn't horrendous, I can't see it stopping you from getting a mortgage (although some lenders don't like applicants to be in an overdraft, but this doesn't apply to all of them).

19lottie82 Wed 05-Jul-17 11:56:42

Sorry I misread your post, you have a credit card not an overdraft, ignore me!

If it was me I'd pay the debt off when you get the money before You buy a house, it seems to be common sense, but that's up to you.

Babyroobs Wed 05-Jul-17 12:12:01

Yes sounds realistic and you would most likely get a better mortgage deal with a good deposit.

EssentialHummus Wed 05-Jul-17 12:25:37

If it was me I'd pay the debt off when you get the money before You buy a house

Me too. But speak to a broker - they're not going to have you sign your name in blood during one appointment, and it'll be useful to get a sense from them of how much you could borrow, and what it would cost. Then have a look at what kinds of properties you can realistically afford.

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