Was it a condition or your mortgage offer? If so, your solicitor should have ensured it was repaid.Halifax! I said I’d pay it off before completion but didn’t and they never checked.
Whereabouts in the country are you? That makes a HUGE difference. Keep your emergency fund if it makes you feel safe. Repay any debt you are paying high interest on ASAP (car finance and loans tend to be lower than credit cards). I got my first house with around £5k debt but it depends on how much of a mortgage you need.Hi, would really like to hear from people who have had between 5-10k debt that they managed to pay off and then end up buying a property. I've got payment plans in place for my debt and I'm saving on top, I'm saving to really do two things add extra payments to my debts and also save for a property. I know Martin Lewis says you should just put your extra money towards paying off debt, but I don't want to be in a position to not be able to pay for emergencies and I may have to move soon and so want the saved up cash for deposit etc.
Really keen to hear from people who've been through this, what tactics worked for you in paying off your debt? How long did it take? Are there any saving tactics you used that you'd really recommend? How did you find your mortgage advisor? I know my credit will still look bad even after I've paid off my debt and their advisor who do work with those who have bad credit. I don't forsee that I'll have any one dying and leaving me money, and it's just me on my 30k salary, so just keeen to hear stories, so I know there is light at the end of the tunnel!
It depends where you are in the UK xyou should be able to get a lovely home with £30k salary se the credit cards down once paid off, just keep them open with zero balance. As cancelling/closing credit cards can really make your credit score go down by a lot, which will effect what you can borrow and the interest rates offered by the lender
it is completely dependent on your affordability and the loan to value of the property. If you’re up north in the UK, you’re more likely to be accepted if you’re on a decent salary but have debt purely because of the property pricesI bought while in LOADS of debt. Not saying that’s the best way to go about it because it’s 100% not.
Paid off the debt once in the house.
If your on a debt repayment plan then it might be different?
Not necessarily. If the mortgage repayment is within affordability, debt doesn’t matter that much. Especially if they have a decent deposit to put down.Was it a condition or your mortgage offer? If so, your solicitor should have ensured it was repaid.
I bought with Leeds this year, had about 10k of debt at the time tooHow did you buy with debt? Which lender please?
But even with zero balances, some lenders will still take the credit limits into consideration when calculating affordability - the theory being they could issue a mortgage offer and, the very next day, you run them all up and max them out. And it happens more than you think - working for a new build mortgage broker for ten years, where there would be build delays and new mortgage offers required, meaning a new credit search would be carried out and people then failed on affordability, taught me that.One thing I will say is if its credit card debit, do NOT close the credit cards down once paid off, just keep them open with zero balance. As cancelling/closing credit cards can really make your credit score go down by a lot, which will effect what you can borrow and the interest rates offered by the lender
Ah ok I didnt know that! Its just from experience our score went down a lot when we cancelled them (we were so happy when we cleared the debt and then that happened! And were trying to buy a house. I went into panic mode ). Have they scapped the affordability/stress test now? I think i read something in the news recently about thatBut even with zero balances, some lenders will still take the credit limits into consideration when calculating affordability - the theory being they could issue a mortgage offer and, the very next day, you run them all up and max them out. And it happens more than you think - working for a new build mortgage broker for ten years, where there would be build delays and new mortgage offers required, meaning a new credit search would be carried out and people then failed on affordability, taught me that.
And I wouldn't get hung up about your individual credit score either. Virtually all lenders have their own credit scoring systems in place, which reflect things that are important to them. Your details are input, a credit search is run (which looks at your credit accounts - loans, store cards, credit cards etc) and a pass/fail decision is given. In my experience, no weight is given to credit scores provided by credit defences agencies.
Im in no place to give advice! But yes would definitely agree with sorting the debt first. I think it would be so stressful trying to sort the debt when you have mortgage payments on top, unneeded. Plus you should be able to borrow more if you have no debt Your debt seems minimal compared to a lot of people I know. Id say clear that then start fresh, you should be able to get a lovely home with £30k salary and wont have any stress of other debts so can budget better. Plus ive heard that house prices are likely to start dropping soon with interest rates and the cost of living rising.. so might be worth holding on for a bit im also in the process of buying my first property and its so hard right now. One thing I will say is if its credit card debit, do NOT close the credit cards down once paid off, just keep them open with zero balance. As cancelling/closing credit cards can really make your credit score go down by a lot, which will effect what you can borrow and the interest rates offered by the lenderHi, would really like to hear from people who have had between 5-10k debt that they managed to pay off and then end up buying a property. I've got payment plans in place for my debt and I'm saving on top, I'm saving to really do two things add extra payments to my debts and also save for a property. I know Martin Lewis says you should just put your extra money towards paying off debt, but I don't want to be in a position to not be able to pay for emergencies and I may have to move soon and so want the saved up cash for deposit etc.
Really keen to hear from people who've been through this, what tactics worked for you in paying off your debt? How long did it take? Are there any saving tactics you used that you'd really recommend? How did you find your mortgage advisor? I know my credit will still look bad even after I've paid off my debt and their advisor who do work with those who have bad credit. I don't forsee that I'll have any one dying and leaving me money, and it's just me on my 30k salary, so just keeen to hear stories, so I know there is light at the end of the tunnel!
When your broker comes to look at your money they will often tell you to use your deposit / part of it to pay off debt - so say you've saved 10k and have 3k debt they will say pay it, and you'll only have 7k deposit then... they sometimes also ask you to use it to pay off things like cars on finance etc.Hello
I have around £3k on a credit card, and £850 overdraft. My credit score is fair. I’m looking to get on a shared ownership property and had a 5% mortgage in principle offer- what do you think my chances are off actually getting the mortgage approved. Should also mention I’m self employed and have an account- but I’m on top of that, I’ve been self employed for 10 years
Hi, would really like to hear from people who have had between 5-10k debt that they managed to pay off and then end up buying a property. I've got payment plans in place for my debt and I'm saving on top, I'm saving to really do two things add extra payments to my debts and also save for a property. I know Martin Lewis says you should just put your extra money towards paying off debt, but I don't want to be in a position to not be able to pay for emergencies and I may have to move soon and so want the saved up cash for deposit etc.
Really keen to hear from people who've been through this, what tactics worked for you in paying off your debt? How long did it take? Are there any saving tactics you used that you'd really recommend? How did you find your mortgage advisor? I know my credit will still look bad even after I've paid off my debt and their advisor who do work with those who have bad credit. I don't forsee that I'll have any one dying and leaving me money, and it's just me on my 30k salary, so just keeen to hear stories, so I know there is light at the end of the tunnel!
I stopped working in 2014, just before the new regulations were put in place, but I did read something about the stress test going, which makes absolutely no sense at all in the current climate. Surely now is the time you'd be wanting to check that who you are lending to could afford the mortgage if rates went up? Absolutely baffling.Ah ok I didnt know that! Its just from experience our score went down a lot when we cancelled them (we were so happy when we cleared the debt and then that happened! And were trying to buy a house. I went into panic mode ). Have they scapped the affordability/stress test now? I think i read something in the news recently about that