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Should I see a broker? snowlady07

Posted: Fri Mar 03, 2017 2:44 pm
by linuslinus2003
Hi there,

I'm looking to buy a new house in the coming months. My salary is £33.5k and I get approx £4K - £5k bonus annually. I currently have no debts but a hefty £340 per month lease car payment which I can't get out of (I've tried but would have to pay £6k in penalties to hand it back and then I would need to buy another car). I have £20k deposit and looking at houses around £160k-£170)

My issue is that I've recently had massive credit card debt of around £35k. This has all been paid off last month and all of these accounts were run ok (no missed payments or overlimit).

According to the Nationwide online calculator I should be ok for what I'm looking for but will these past debts cause me a problem? Should I be talking to a broker first?

Thanks in advance.

Posted: Fri Mar 03, 2017 11:00 pm
by fe
If you pick the wrong lender, it will treat the card still as still being there and just assume you will redraw it.

A broker would be a very good start.

Posted: Sat Mar 04, 2017 11:30 am
by convergent
I dont think you will have a problem getting a Mortgage and at normal rates, but a Kingstreet says there are 1 or 2 lenders that should be avoided.

Posted: Sun Mar 05, 2017 12:59 am
by linuslinus2003
I'm going to close all of the accounts, bar 1. Will that help?

Posted: Sun Mar 05, 2017 3:04 pm
by fe
No. If the balance is visible in the three month run-up to the mortgage application, it will be taken into account.

Closing accounts can often do more harm than good. Discuss things with your broker before you start taking precipitate action.