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Original poster

New mortgage with outstanding debts

17 replies

Rosesara · 16/02/2021 13:31

Anyone know if this is a possibility?

Joint income approx 65k.
10k in credit card debts (my name). Was even more Angrybut I've paid of alot and never missed a payment.
One dependant and zero child care costs (yay!)
Looking to buy for 350k
Currently have about £140k equity.
Would be looking to put at least 25% deposit down so 88k, possibly more.

I did think that I could use some of the excess equity to pay off the cards on completion or could I carry the debt across?

I am worried this 10k will stop us being able to move at all.

Thank you in advance to anyone who has any insight to offer.

OP posts:
Perfect28 · 16/02/2021 13:35

I highly doubt it. It is all about affordability so it depends how much you are spending each month as a % of wage servicing debts.

Iamtooknackeredtorun · 16/02/2021 13:38

I've just had a mortgage offer in following position:

Single parent
£95k income
£140k equity
£13k credit card debt
Mortgage £375k (£98k deposit)

No defaults or anything of that nature.

Use a broker is my advice.

Good luck

bellalou1234 · 16/02/2021 13:38

I'm in same boat

Original poster
Rosesara · 16/02/2021 13:39

Thank you for your reply.

The minimun payments are £270 month.

I thought it may be possible as we have a big deposit and could potentially clear it all in completion.

I don't struggle to pay the minimums at all.

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Iamtooknackeredtorun · 16/02/2021 13:45

The other thing I would add is that for quite a while I have been overpaying my cards. At least twice the minimum payment. That has given me a greater sense on what taking on a bigger mortgage would feel like.

Original poster
Rosesara · 16/02/2021 13:49

Iamtooknackeredtorun

Thank you for your advise. Congaatulations on your mortgage offer.

I do over pay the minimum on the cards already. I wish I hadn't racked them up but it is what it is and I've learnt my lesson.

I'm very grateful for the equity we have managed to build up in our house.

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BarbaraofSeville · 16/02/2021 14:14

Have a play with some 'how much can I borrow' mortgage calculators - see moneysupermarket etc.

If you took your £140k equity and kept £20k back to pay fees/stamp duty if necessary and the £10k debt, that would mean a mortgage of around £230k or about 3.5x joint income, which would be allowed, I would have thought.

Or is there a reason why you don't want to put all possible equity down on your next house?

Have you switched the card debt to 0% interest so it gets paid off quicker?

Original poster
Rosesara · 16/02/2021 14:36

Thank you for taking the time to reply.

We are happy to put down the bulk of equity if needed... I just though 25% would be a good starting point.

Could never of sreaed of that kind of deposit when we originally bought our current house.

Various calculations have suggeted up to 260k over 30years (we are mid thirties) us possible... Its just so worrying.

I will need to but the bullet and contact a broker I know...

Just hope me and my stupidness with credit cards haven't ruined it for my family.

Thank you for your reply. I really apreciate it.

OP posts:
Figarill · 16/02/2021 14:50

My crude way of gauging it is taking your salary & times by say 4 (can be 5 depending on earnings) and take the debt x 5 away from that total.

Figarill · 16/02/2021 14:55

sorry debt x 4. I don't think it's a huge problem as you have equity to make up your 350k

Outnumbered99 · 17/02/2021 14:00

Another one saying speak to a broker, and if its any reassurance at all I work at a brokerage and we speak to people with FAR more debt than you are in, its absolutely nothing to be embarrassed or ashamed of, particularly that you are dealing with it and it is reducing! All financial disclosures are handled sensitively and confidentially- its our job. Please don't be nervous.
Just make sure you speak to someone independent, whole of market and that won't charge you a fee. Good luck!

Original poster
Rosesara · 17/02/2021 19:35

Outnumbered, thank you for your lovely reassuring message.

I will continue to make a dent in my cards, and once I've managed to sort my house out (declutter, declutter, declutter) u will get in touch with a broker.

Thank you to everyone who has taken the time to reply. I really apreciate it.

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Outnumbered99 · 18/02/2021 16:36

You're welcome @rosesara, am with you on the declutter declutter... was my job for half term and it isn't going well!

TheNextChapter · 18/02/2021 19:23

Honestly dont worry about it. My broker found me a high street deal and I have previously been on a debt management plan. It's more about affordability these days.

Original poster
Rosesara · 19/02/2021 13:43

TheNextChapter

Thank you for your reply.

I'm glad you managed to get sorted.

I have an appointment with a broker next week 😊

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Alienchannell21 · 19/02/2021 13:54

Can a family member lend you the money to clear debt and then repay when you sell and you hold back some equity? I had 4K career development loan and bank said if I could clear it I could borrow more. My parents lent it to me (just needed to show it had been paid at time of exchange) then I paid them back when house completed.

Original poster
Rosesara · 21/02/2021 19:07

Alien, thank you for your message.

I could borrow the money, yes, but as I've racked up these cards by being careless, I don't feel in the position to ask for a loan of my really careful mum. She would also be astounded at my level of debt.

Thank you for your suggestion though, it had crossed my mind.

The broker who I emailed seemed to think we would be fine, I'll know more when I talk to him next week (we have only emailed so far)

Thanks again x

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