Adopting With Debt- Any Experiences?

[WittyUsername123]

Myself and my partner earn well and are financially secure generally. Over the last year we had a big extension done which cost a lot and we had to get a substantial home improvement loan for. We can manage the repayments and have even calculated that we could manage it all on one salary. However, I’m really anxious that because we have debt we won’t be considered at all- that’s what I’m reading elsewhere. Does anyone have any experience of this?

When we did our financial checks, they were only really interested in what we had left at the end of the month. I would think it would only be a problem if you couldn’t afford repayments and hadn’t thought of what you would do on a reduced salary. It sounds like you’ve planned it all really well and if you can pay it back and live on one salary I really can’t imagine it being a problem! Especially as it was for a home improvement loan and the extension.

Yes, this is correct. We also had a big home renovation before adopting, but we were only ask to disclose our monthly income and outgoings. :) So as long as you have a good balance by the end of the month, it should be fine. Depending on the age of the child and your personal circumstances you need to take into account potential nursery costs. Good luck!

If it’s manageable debt, it will be fine. Also, you have mapped out what things look like on one salary which is good planning. Agree on nursery being a big cost, worth looking into - although your children wouldn’t be going straight into nursery, worth thinking about if you can’t go back to work after adoption leave.

Thank you so much, that’s really reassuring

whilst I agree that managed debt is ok, I too have a home improvement loan, do take a good hard look at the % of your income would be tied up by your mortgage and loan should you need to go down to one income, and have some back up plans.
Eg can you take mortgage holidays, what capacity is there for remortgaging. I've remortgaged several times, both to reduce my outgoings, and finally to get back to my original mortgage redemption date.
It doesn't sound like you have applied yet - a good test is to try and live on the one salary for a few months to see if you can actually do it - use the money to boost your savings or overpay your mortgage to build in that capacity for a mortgage holiday.
And if you don't already, get a fixed term rate for as long as you can, who knows what will happen to interest rates in the next year, even small increases can blow tight budgets. I've always preferred to pay a bit more for the stability and it's usually paid off when rates have gone up.