2007-06-02 00:42:18 · 17 answers · asked by Call me Carly 1 in Business & Finance ➔ Personal Finance
Depends on how you ran up the debt, I imagine.
If you take out a 110% loan, you will have to pay off your 20k debt over the term of the mortgage - say 25 years. Calculate the interest you'll end up paying - it'll cost you a fortune!
Also, if you can run up 20k on your current income, how are you going to manage to afford ANY mortgage repayments? Have you worked out a budget and tried it out for a few months to see how you'll manage?
Finally, think carefully before you buy. The property market is cooling down a little at the moment - if the trend continues or increases, you don't want to find yourself in a negative equity situation, should you find you've overstretched yourself.
I'd say, be patient, clear your debt, save even a small deposit to hone your budgeting skills, then go for it!
2007-06-02 00:59:43 · answer #1 · answered by RM 6 · 0⤊ 1⤋
When purchasing a home, you will not get a mortgage lender to lend you 110% of the value of the home in order to pay off debt. In fact, depending on your credit score, many lenders require that you put at least 5% down.
Pay down your debt and save your money before you buy a house.
2007-06-02 03:01:12 · answer #2 · answered by aj485 5 · 0⤊ 0⤋
No offence, but we all want somthing at one time in our life. Weather it comes at that time or not is the big question. One would think that with 20k in debt, you would have way more important things to worry about at the time (ie paying off that debt), and not even be thinking about that.
The answer is to pay off your debt or at least 90% of it before thinking about buying some property.
2007-06-02 00:45:50 · answer #3 · answered by J. 4 · 0⤊ 0⤋
So you propose risking the house you don't even own yet to clear what I suspect is currently unsecured debt? I wouldn't get a home equity loan to pay unsecured debt. My answer is you can't afford to buy property at this time. Write yourself a budget, spend less than you earn, and get rid of the debt. Then you can save up to buy property.
2007-06-02 03:36:43 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
hey as previous people have said its probably gonna be easier to clear your debts first, why not rent a while to boost your credit rating whilst paying it off, and maybe without adding fuel to the (already lit) fire, get a credit card and just put a payable amount on it each month once youve done that you should be able to get a few more choices in different types of mortgages. If your in the UK, try a company called Red Rock i think it is, they sorted me and my partner out good luck!
2007-06-02 01:00:58 · answer #5 · answered by Lisa H 4 · 0⤊ 0⤋
If you are that in debt just now, wouldn't you be better to try and clear it off before you think of buying a property?
2007-06-02 00:45:19 · answer #6 · answered by Ally 5 · 0⤊ 0⤋
sounds doubtful to me - have you considered the housing schemes where you can buy a percentage of the home, and the association buys the rest. EG. you get a mortgage for 50% - and then when your finances improve in the future, you can apply for the rest of the home.
(Not sure if that only applies to Key Workers in england though (police, nurses, teachers etc)
2007-06-02 00:48:47 · answer #7 · answered by Smiler 5 · 0⤊ 0⤋
It looks like you would stand a good chance of losing the property and adding to your debt.
2007-06-02 00:51:47 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I'm certain that you must find every financial solution at= loandirectory.info-
RE If I have a 20k debt and want to buy a property but have no savings is a 110% mortgage the answer?
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2014-09-03 12:39:02 · answer #9 · answered by Anonymous · 0⤊ 0⤋
A mortgage is more debt.Remember that the value of
property can easily go down but repayments do not.!!
2007-06-02 04:29:47 · answer #10 · answered by HELEN LOOKING4 6 · 0⤊ 0⤋