Decision

[Jobhunterteacher]

Hey there, what would you do? My partner and I have spilt up and are selling our three story house! As it is a new build annoying it hasn't added any value and we sold it for the same price we paid for it, Because we overpaid lucily o will take out around 22,000. My question is this I have 30,000 of debt spread across crisis card, loans and overdraft. Would you use the money to clear all debts bar one leaving behind a monthly payment of £300 or buy a two bed play or shared ownership property and gave debt repayment of 600!- month on top of mortgage. I just worry that is I don't. It I never will as I'm 47 next and it will be too hard to pay everything off and save taking at least three more years! As o would have to rent which will probably cost the same as a mortgage. What would you do??

If the debt is manageable I would focus on getting a home, before you decide speak to a broker as with that amount of debt it may be difficult for you to get a mortgage

You may have to clear the credit card debt to get a new mortgage.

We did even though it was just our regularly monthly expenditure that we always paid in full AND we were just porting our existing mortgage to a new property that was cheaper so the LTV was fab.

You need to speak to a mortgage advisor as with that level of debt you may not be able to get a mortgage

Now seems to be a good time to start again, set the budget, clear all debts, start saving for a deposit again. As pp said your affordability calculation for a mortgage is going to be impacted whilst the debt is there.

but it depends on the interest rates on the debt. If the interest rate is higher than mortgage rate then repay the debt first, assuming you can get the mortgage you need.

Thanks all luckily I have been told I can get a mortgage out to 130-140 which can get me a two bed flat onan nice area