BOB.T

Hi,

I'll cut to the chase, I've got some debts I want to pay off, I'd like a new car and I want to move out.

I'd need £10K to cover my debts

I'd be looking at around 9 - 10K if I were to get a car, I'm not too fussed about the car though.

And the house... well dunno really, prolly no more than 30K at a guess.

I'm 25, earn around 16K pa, single.

What's my chances and who's good?

Many thanks in advance,

Bob

paulr

My advice..........pay off the debts first,then think about the house/car later.

MichelleWRX1994

Bob,

That would be my advice too.

pedestrian

Bob,

Been a while but I used to work with mortgages and from what I remember, lenders will tend to give you 3 times or 3.25 times your income when working out a mortgage, so you should be able to borrow about 50K for a house. You might not be able to borrow as much if you already have unsecured credit though (often a catch 22 situation unfortunately). A mortgage is a secured loan - the security for the lender being the house they could repossess of course.

Most lenders only lend 90-95% of purchase price but there still are some which will do 100% lending. However I'm sure breaking this down so you are only using 60% of the mortgage for the actual property will be very difficult to do. The lender is unlikely to lend you 50K when the property the loan is secured on is only worth 30K.

I know that you can now sometimes get unsecured debt included in a mortgage, but I'd be suprised if lenders do this to anyway near the amount you want.

Maybe buy a copy of What Mortgage? and have a look through this? If I was in your position I'd certainly make sure of being able to get a mortgage before making any moves on taking on a new unsecured loan (if that becomes your only option) to sort out your car and current debts.

pedestrian

Bob, sorry if I've misinterpreted what you want, didnt know if you were wanting to include money for a car and to repay off existing debts within a mortgage.

I also agree with Paul and Michelle. Priorities I would put as are same: 1, pay of existing credit (unless you can get a mortgage at same time without stretching yourself), 2 get mortgage, 3 get a new car.

Mufasa

This might not be the case anymore but, when I was looking at getting a mortgage with the Abbey one of the questions my IFA asked was did I have any unsecured loans out with Abbey/Cahoot? If you do then in the small print somewhere Abbey say they can secure those previously unsecured loans on your property, it had yet to be challenged 18 months ago.

I borrowed a fair bit from Tesco & a graduate loan for a car.
I wouldn't do it again, 60 months is a feckin long time.
If I had put that money aside every month I could have bought the car outright in 36....

BOB.T

Cheers peeps, kinda what I thought

Looks like I'll be stuck at home for a few more years then

I looked into a Virgin 1 account, the minimum you can borrow is £50,000 but they'll only do 95% of the house value, which seems reasonable I guess.

If only I'd never got involved with credit cards and fast cars.... at least I don't seem to have a problem with fast women

Bob

Little Miss WRX

Bob,

In the long run you will be better off doing that. Clear your debts and/or find a higher paid job. That is the only way you will be able to achieve what you want and not get yourself into trouble that you may not be able to get yourself out of.

As for fast women? Steer clear of women, nothing but trouble

MattN

I'm also 25 earn a bit more than you but with the mortgage and bills etc. there's no way I could afford a 20k loan on top.

I managed to get 4x my salary but where I live 1 bed apartments cost upwards of 100k

In the end I had to move 25 miles away from work to afford a place of my own (I was renting before so no chance to save the pennies).

BOB.T

I'm trying to stay clear of women, don't need the hassle, I'm not gay though before anyone gets the wrong idea

100k for a flat, **** that's expensive, you could buy a full terrace for that here

I guess I would be better off financially stopping at home, I just want out tho, Chelle, you know where I coming from don't you.

One good point about being at home... free net access!!!

MichelleWRX1994

Bob, I kinda know where you are coming from aye.

IT wasn't feasible for me to stop at home anymore, so I took it upon myself to go.

I never had free net access at home, I had to pay for everything myself. Lodging with someone is actually working out (at the moment) cheaper than living at home!!!!

Why don't you see if there is someone who is willing to share?

Dream Weaver

Bob - Get yourself moved over here. There are some great terraced houses near to me (well, the other end of the village) going for circa £30k.

Sell your motors, get a £35k mortgage, and get setup here.

DW

Robertio

iTrader: (1)

£30k for a house? where do you stay DW? Outer Mongolia?

Bob, I'd agree with the majority, stay at home and save as much as quickly as you can, you'll be surprised how much you can set aside each month if you do absolutely nothing (admittedly, that is easier to do during the winter months) especially if you don't have a car. I tried to run the scoob while buying a house and it wasn't easy, in the end I had to sell the car before I owed more than the car was worth
If you like a challenge, get a credit card with 0% apr for 6 months on balance transfers, put as much of your existing debits onto it as you can, then make sure you pay it off inside the six months, the thought of 18% apr on anything left should act as an incentive

InvisibleMan

Yeah stay at home for as long as you feel comfortable, save as much as you can. Otherwise find a flatshare to minimise the expense but generally dont rent, such a waste of money, it gets you nowhere. It all depends on your longterm plans. I know people who get loans & they get in so much debt they get loans to pay off the loans its madness, you are constantly paying off the interest & never paying off the loan at the rates/duration they quote.

BOB.T

£30K for a house round here is no problem at all, I live near Dreamweaver btw.

re the loans for debts.... guess what I did I got a loan to pay my cards off... then filled em back up, hence my current situation.

Anyone want a Fiesta, Renault 5 GTT, minimoto, tv....body?

So the latest plan is : stay at home and don't spend any money, ever! Sounds about right, got to pay mi debts off somehow!

cheers

Bob, ps it's mi birthday!!

Robertio

iTrader: (1)

Happy birthday Bob, hope you've asked for cash from everyone

Dream Weaver

Happy birthday m8

Good luck with whatever you do.

Simon

BOB.T

DOH! knew I should of said summat, bugga!

Cheers for the b'day wishes

Bob