So, I'm still waiting to find out if it's going to be possible for me to get a mortgage at all this time around. My broker is having trouble getting the smaller building societies to lend the amount I need, so I may just have to give up on that idea and lose this flat for now.
So ... I'm trying to put a fall-back position into place, and I was wondering if those of you in the know could let me know which of these would be the best option.
- My current salary is £42300
- I've just paid off the overdraft I have, but I also have around £7500 on credit cards, a lease purchase payment for my car that is £236 a month, plus student loan payments that come to around £200 a month. Those are my current debts.
- My parents are offering to gift me £25000 as a deposit for a flat.
- I'm looking at flats in the region of £125000-130000
I'm thinking of asking my parents if they would mind if I used £7500 of the deposit money to pay off the credit cards. I would then have no credit card debt and no overdraft.
The lease on my current flat is up at the beginning of July, and I have to find somewhere else by then. So, the way I see it, if I can't buy, I have a choice.
Scenario #1 - I rent somewhere else at a similar rent to what I'm on at the moment for six months or longer. I usually put aside £100-£200 a month anyhow, and if I've paid off the credit cards, should be able to up that to around £400 a month. Over the six months, I would be able to hopefully get the deposit back up to around 15% on the flats I've looking at.
Scenario #2 - rather than rent anywhere else, I go back to live with my parents for at least three months. If I'm living with them, I should be able to put aside around £1000 a month, and probably more, which would get the deposit up to 15% within a few months.
In each scenario, I would then be able to apply for a mortgage with a 15% deposit, no overdraft, no credit card debt, and with my only committed monthly outgoings being my car payment and my student loan.
Those of you in the know, does either of these scenarios seem like the better option to you? Do I need to wait a specified amount of time before applying again if I've corrected the overdraft issue and removed most of the debt? I have two searches on my report this time around so far. Does living with parents for a few months look bad to the lenders, or would they take that as a sign of me being serious about saving for the deposit?
Any suggestions welcome! Still holding out hope that it might work right now, but if I know I have a plan in place for if it doesn't, I'd feel better.
Thanks in advance.
So ... I'm trying to put a fall-back position into place, and I was wondering if those of you in the know could let me know which of these would be the best option.
- My current salary is £42300
- I've just paid off the overdraft I have, but I also have around £7500 on credit cards, a lease purchase payment for my car that is £236 a month, plus student loan payments that come to around £200 a month. Those are my current debts.
- My parents are offering to gift me £25000 as a deposit for a flat.
- I'm looking at flats in the region of £125000-130000
I'm thinking of asking my parents if they would mind if I used £7500 of the deposit money to pay off the credit cards. I would then have no credit card debt and no overdraft.
The lease on my current flat is up at the beginning of July, and I have to find somewhere else by then. So, the way I see it, if I can't buy, I have a choice.
Scenario #1 - I rent somewhere else at a similar rent to what I'm on at the moment for six months or longer. I usually put aside £100-£200 a month anyhow, and if I've paid off the credit cards, should be able to up that to around £400 a month. Over the six months, I would be able to hopefully get the deposit back up to around 15% on the flats I've looking at.
Scenario #2 - rather than rent anywhere else, I go back to live with my parents for at least three months. If I'm living with them, I should be able to put aside around £1000 a month, and probably more, which would get the deposit up to 15% within a few months.
In each scenario, I would then be able to apply for a mortgage with a 15% deposit, no overdraft, no credit card debt, and with my only committed monthly outgoings being my car payment and my student loan.
Those of you in the know, does either of these scenarios seem like the better option to you? Do I need to wait a specified amount of time before applying again if I've corrected the overdraft issue and removed most of the debt? I have two searches on my report this time around so far. Does living with parents for a few months look bad to the lenders, or would they take that as a sign of me being serious about saving for the deposit?
Any suggestions welcome! Still holding out hope that it might work right now, but if I know I have a plan in place for if it doesn't, I'd feel better.
Thanks in advance.