Renting, significant debts, want to buy in future - possible?

[Stealthynamechange]

Hi all

I have always rented with xh, currently rent alone, i have 6500 debt on 0% credit cards, 13100 in a loan (consolidated marriage debt before it ended 🤦‍♀️)
I have good income 41000, just stopped paying childcare costs.
I would really like to buy in the future, still have divorce to pay for.
Is it possible?? Im 39 & wonder if ive just left it too late to sort myself out?!

Sounds like you're in a good position
We were in your age group when we bought our current / 1st house
You'd need a very good deposit and I'd get a very good mortgage broker . That's what we did . I'd try to do it sooner than later
A friend of mine going through a divorce which stands at 11 years I think ( he's dragging through laziness and greed ) is having difficulty gettting him off the mortgage to this day and he's never put a penny toward it since
We had to get a shorter mortgage due to my husbands age he was 39 🤷🏼‍♀️
It's doable, but don't leave it much longer

Thank you, i guess i just cant see how i can get a mortgage with this level of debt. Currently no deposit either.

I don't think it's so much the debt , is it under control ? .. we owe 15k and still maintain a mortgage , it's the deposit you'd need to look at

Go to the money saving expert forums and post on the debt free wannabe threads. There are lots of debt advisors and mortgage brokers on there.

Just save save save for a deposit! None of us know what's going to happen with deposits/mortgages but at least if you have a wad of ready cash it will make it easier. Definitely not too late. My friend bought at 45!

Would you prioritise saving over repaying the debts?

If you need a 25 year mortgage then you have till age 43 to pay down debt and save a deposit. Till age 4, if you can do a 20 year mortgage. This is on the standard terms to retirement and some banks do longer than retirement age, with affordability and retirement income taken into consideration.

It's absolutely possible, just be frugal, save hard and pay down debt as fast as possible.

Pay the high interest ones quicker with just above minimum on the others and get 0% cards if eligible and balance transfer to further cut down interest costs.

Thanks really apreciate the replies.
credit cards are on 0% loan is 5%. Now I'm not paying childcare ive an extra 200 pcm not sure where to prioritise - saving or repaying debts? If repaying debts which first 🤷‍♀️ posted on mse but no replies.

Cut back on everything you do not need. Work out a budget with low cost days out and all the essentials, add in a few low cost treats. Then stick to the budget.

Shop around for all costs insurance, food, tickets, absolutely everything.

After debt repayment depending on what interest the loan is at, it is worth saving.
Save first as a bill on payday, as once you have a budget, you know what you will spend each month, so transfer your savings first. Not at the end of the month.

Regarding the loan, look at whether the interest is the best rate and and whether you can repay and transfer to interest free if possible. But only if you can afford to repay before the end of the interest free term. Ie £13k loan and £6K can be transferred to interest free credit card and you can afford to repay it in the 20 month term. Cutting interest costs.

I'm sure someone will reply on MSE soon but also look up Dave Ramsay and the snowball method of reducing debt. There was a thread on here a few days ago about the Dave Ramsay method also.

Thanks both.
If i repay loan first its going to take approx 5 years - sounds like that will be too late for a mortgage? Also i'll still have no deposit ...
Ive reviewed all spending, it's as tight as things can get. On the upside I don't use my overdraft :-)

I think you are going to have to look at other income streams on top of your normal job. Have a look around the MSE boards for ways of earning extra pennies. Also there is the Make £10 a day thread on here.

Don’t get too hung up on your age just yet. OH and I bought our first property together last year (his first ever) and he had not long turned 50. It’s a 19 year term mind rather than 25 but workable for us financially. We had a fantastic broker who sorted it out for us. Your main priorities are streamlining your outgoings, keeping on top of the debt repayments and get saving for your deposit.

I just got on the property ladder last year in my 50’s, with credit card debts. So I don’t think you will have issues with your age tbh.

You have definitely not left it too long! There are loads of lenders out there that will go up to 75yrs old and beyond if your job is administrative. The mortgage you can get will be based on your deposit and income (and your expectations!).

How much deposit do you have? I'll give you a rough idea of what you might qualify for.

. Now I'm not paying childcare ive an extra 200 pcm not sure where to prioritise - saving or repaying debts? If repaying debts which first

debtfreefamily.co.uk/debt-snowball-calculator/

As for paying of debts or saving

What’s the actual point of saving if you have debt? Unless of course the interest on the debt is less than the interest on the savings...unlikely

We bought 2 years ago for 1st time. I was 45. Could only get a mortgage for 23 years though.

We had spent around 7 years saving a deposit and only managed 5% so mortgage payments are quite high - but manageable.

It is really nice to finally have our own place. You need to be saving as much as you can from now.

Thank you everyone, really appreciate the time taken to reply. It's great to hear some positive stories - & a relief to know i haven't left it too long!
I will look at the link posted too.
To the poster who asked i have no savings, my cards are 0% loan is 5% i think.
I'm currently doing a bit of a combination, which may not be the best plan but lack of deposit worries me! I have increased my loan repayments which will shorten the term & pay additional to my credit cards each month, whilst also putting aside a little bit in a savings account.
Fingers crossed I can get on the property ladder one day - its just a matter of staying focused on the goal i guess.