Getting a mortgage with debt
Getting a mortgage with debt
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Discussion

EB89

Original Poster:

803 posts

221 months

Friday 10th November 2017
quotequote all
Hi all,
I'm just after a bit of advice, I'm currently mid-way through a bit of a personal finance turn around and I'm quite happy with how that's going; Making good progress each month (Paying off £1.5 - 2k) and never struggle to make repayments...

However, I am still renting (Albeit in a cheap house-share) and keen to buy a house as soon as possible.

Now currently I know I wouldn't get a mortgage with £22k loan & credit card debt, £55k salary but no savings
What I'm keen to know is at what levels of debt should it be possible to still get a mortgage?
I'd be looking to lend up to about £150k
And of course fully anticipate I'd need at least around £12k cash for deposit, fees, furniture etc

So would it, for example be possible to have £10k outstanding debt but also £12/15k cash for deposit and fees etc and get accepted for a £150k mortgage?

Appreciate all of this will also come down to individual circumstance, credit file etc - but just looking for a general guide.

lukefreeman

1,502 posts

205 months

Saturday 11th November 2017
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It's possible assuming the affordables per month aren't too high (if you're locked in to paying £1k a month for the loan it's not as good as £200 a month on loan!)


Rick101

7,189 posts

180 months

Saturday 11th November 2017
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I'd imagine it is possible but if you can pay off 2k a month without struggling, I'd make some sacrifices and have it gone in 6 months.

You could easily be 6 months deciding what sort of place you want, doing viewings, making offers and then g another 2 months for solicitors to pull their finger out.

Start you search, hammer the debt as much as you can. By the time you get round to getting quotes you will prob be under 5 figures. By the time you make the application, maybe even deb free.

TheAngryDog

13,246 posts

239 months

Thursday 16th November 2017
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you'll probably need closer to £18k for deposit and fees. You'll likely need a 10% deposit if you're looking at a purchase price of £150k. If borrowing £150k then you'll be looking at more, obviously.