Can I get a mortgage with debt?

[Finallyreachedmylimit]

Hi, I've reached my limit and realise I need to leave my H. As this is property not relationships I won't go into the ins and outs as to why. I need to get through another month as it's his 50th and there are loads of plans then I can go. I want to break free financially otherwise they'll still be an element of vindictiveness and control. I expect he'll buy me out, I'll get about £180000. I earn £41 in a reliable public sector job. However I have about £6 in credit card debt that I'm paying off slowly but regularly. My credit score is very good. The debt is from when he was out of work or when he's refused to pay for things.

I want to buy another house and could afford up to £300k I think. Question is with that debt can I get a mortgage? I would pay it off straight away once I got the cash.

Please advise

£41k that should say!

And £6k in debt

On a word yes. It’s not even that much debt. Just find a good broker. Shouldn’t be a major issue - it will just reduce the amount you can borrow. Metro bank have a good online calculator for residential mortgages which lets you put in credit card debt and see how much it reduces your borrowing power which would be a good guide. Not something you need to hugely worr abut in the overall scheme of your situation!

Phone online broker London and Country, it's free, they'd tell you!

There are strict "stress tests" from banks now to test your ability to pay in the event of increased interest rates. The amount you can borrow now is much less than it used to be.

Also bear in mind your age - you cannot borrow beyond a certain age (so might have to repay in a much shorter term).

Your existing debt repayments will also be taken into account meaning you can borrow less.

Yes they just subtract what you off of your affordability

Yes, go to a broker. They will help you. Seriously, you will have no problem at all.

Thank you all that's very helpful. I'm 47 which means I know I have a shorter repayment period. I've adjusted my expectations from a 3 bed to a 2 bed property, my DC are teenagers and when they stay at mine I'd be happy to sleep on a sofa bed! DD will be finishing a levels in 2 years and off to uni.

If the debt is a problem you could use some of the £180k to pay it off. But £6k shouldn't cause big problems, unless you've missed payments or something. It will reduce the amount you can borrow though, because a portion of your monthly income is going to the credit card.

Yes was planning on using £150k as a deposit, about £5k fees, paying the £6k off straight away then putting some away for savings and using a few £k to make wherever I buy nice e.g. curtains and stuff, bedroom furniture. I wouldn't want any repayments bar the mortgage once I'm sorted. Dreading the whole house purchase thing a bit as know how difficult is at mo but I'll get there.

Sounds fine to me. You should be able to get 4.75 times your income and they will just factor in the monthly payment towards the card. Long as your debt to income doesnt exceed 50 percent. So mortgage and debt payments are less than 50% of your net pay and you dont live in majorly expensive area you should be okay.

@tootiredtospeak

Sounds fine to me. You should be able to get 4.75 times your income and they will just factor in the monthly payment towards the card. Long as your debt to income doesnt exceed 50 percent. So mortgage and debt payments are less than 50% of your net pay and you dont live in majorly expensive area you should be okay.

I live in majorly expensive area now but am moving to a cheaper one but nearby. Once DS finishes a levels I'm moving area properly as I will have nothing to keep me round here. Then I'll be happy with a 1 bed flat! The only thing that's slightly tying is kids still being at high school, I want them to be near their friends and able to get to school relatively easily.

They will normally use model data for things like council tax gas and electricity and so on so a London postcode will be much higher than a Yorkshire one.

We had £26k debt when I bought my new house and our combined income was no where near 421k and We got a mortgage with a high street bank’

I applied for a mortgage pre sale of my house, similar earnings and 6k on credit card. My upper limit was 14k less than this time around applying after the debt was cleared: not an issue either way, just could borrow less due to affordability checks

Wont be a problem, speak to a broker. One mentioned upthread is an option but there are many smaller ones offering at least the same service, ask locally to you for recommendations

If you haven't missed any payments and the debt is not growing then a £6k credit card balance is not an issue

It won’t be a problem. We always owe money on credit cards (not sensible I know!) and have moved house many times without even using a broker. They just take any debt into account when working out how much they can lend you