Could we get a mortgage with this info?

[Nowornever222]

I probably should go to a mortgage advisor but wanted to ask here in case it's not worth it yet, if you see what I mean. Do we have a chance of getting a mortgage based on this info?

We rent at £1200 per month
Both have FT jobs, combined income of £110k per year (very recent increase, it hasn't always been this!)
Got about £25k on credit cards on 0% interest that we kept shufling about paying minimum payments.
Started saving for a deposit but only got £5k so far, has been difficult with rent and family obligations but should get easier now with income increase.
Would be looking for a house at about £350k mark based on where we are.
Both are 45 years old.

Do you think we'd get a mortgage and enough of it? Would we be able to roll the credit card debt into it?

Many thanks!

I've found London and Country to be really helpful mortgage brokers, if anyone will lend they will tell you quickly and more accurately than we all can. They will look at the full market, not just one bank.

Your income will be fine so long as you don't have crazy outgoings. I think you'll want nearly £20k for the deposit and maybe more for stamp duty (if needed) and moving costs, I guess that's your problem, but if you can get a 95% mortgage you may be OK.

I'd try to avoid rolling the cards in—if you do, you will pay them off over 25 years with interest. If you can make them a priority and keep them on interest-free cards for now, you will be grateful in the long run.

If you're spending £350k on a house, you're going to need £20-35k plus fees as a deposit and the credit card debt could well be detrimental. It's really not a good idea to roll the debt into a mortgage as it will then be extremely expensive to pay back.

Your ages are also likely to be detrimental as you'll want to have the mortgage paid back before retirement age unless you can demonstrate that your income in retirement will be sufficient to support the mortgage.

If you're serious about buying, you should probably look at living as frugally as possible for a couple of years (no holidays, new cars, limit non essential spending as much as possible) to get out of debt and save ideally a 10% deposit as this will make your mortgage cheaper.

Highly unlikely with that amount of credit card debt that's been moved around, plus the small deposit.

Mortgage wise you should be fine, but you need to build up a decent deposit of £35k to get a 90% mortgage, plus money to cover fees and stamp duty

It's a long time since I worked in mortgages, so I can't tell you on the affordability, but I can answer some parts and bump it for you at least!

You will normally need a 10% deposit - so if you're looking at a property of £350,000 then that's £35,000. On top of this you will need solicitors fees, surveyor fees, removal costs, possibly stamp duty (as I say I'm way out of date). There may be some lenders that will allow a 5% deposit but the same extra fees will still apply, so you'll need to save for a bit longer if you've only got £5,000.

The credit cards debt will be taken off your income before they calculate what they can lend you, so that's going to have an effect on the amount you can borrow.

Also, you say about "rolling the credit cards debt up" - that won't be possible, because the maximum they will lend is 90-95% of the valueof the house, and if you need the money to buy the property you can't pay off the credit cards with it. People that you hear about that have done that will have a smaller mortgage, so they can borrow more but still not exceed 90% of the value.

Hope this bumps at least, so that someone with more current knowledge can help!

At this point no, you don't have enough savings to pay the deposit. You would need at least 40K in savings for everything but even then your credit card debt can put a stop to it if you haven't shown that you have made serious efforts of paying it back. Just moving it around shows that you aren't able to take on additional debt.

My son and his partner earned less than you at around 55k joint but had a 100k deposit on a 320 house

my son had to pay off his 3k credit card and show proof to the mortgage company it was paid before they would release the funds earlier this year

no other debt and he had around 45k in savings / inheritance as well & both had excellent credit score

This was Halifax through London and County

The earnings and debt aren't necessarily an issue - most good mortgage advisors will be able to find the right lenders for your means - but the deposit definitely is.

As others have said, you will need 10% as an absolute minimum. Plus stamp duty and solicitors and estate agent fees. So around £40k cash before you can even start the process.