can you get a mortgage if you are in debt?

Answer 1

Yes, if you can show the ability to make the mortgage payments, tax payments, debt payments.

Answer 2

The sub-prime mortgage market that has hit the US has flown its way over the Atlantic and is now part of the UK mortgage market. It really depends upon the affordability of you paying off the debt and servicing the mortgage and interest payments also. It is likely that you will receive some challenges from some mortgage sellers but I would imagine that as long as you act confident that you can pay them their money back, you won't get much resistance after that. Mortgage sellers are much more relaxed about what used to be the traditional mortgage etiquette 10 years ago. It is now possible for people to receive mortgages at 6 times their annual salary, so why not if you are in debt. Be careful that you can actually afford to pay it all off, though - the last thing you want is to get into even more debt which you cannot pay off. It will force you into insolvency or bankruptcy and your home will be repossessed.

Answer 3

Obtaining a mortgage when in debt is still very much an option open to you. There are many lenders who will entertain this business and they all have many different calculations for working out how much is affordable for you. They will take into account salary and your existing financial commitments and then applying a multiple of your income.

If you have bad credit or missed payments you can also obtain a mortgage loan, the main difference is your rate will be higher as you are perceived a higher risk borrower as opposed to someone who is a good payer of existing commitments.

All info was correct at time of answering.

To find an IFA who can provide you with further advice on investing/tax/etc call 0800 085 3250 or go to http://www.unbiased.co.uk.

Answer 4

Almost everyone with a mortgage has other debts. What your debt will likely affect is the interest rate you pay. The higher your credit score, the higher your interest rate is likely to be. But, as long as you can demonstrate you can make the payments, you will get a loan.

Answer 5

All depends if you can show the potential lender that you can afford the payments.

If you are in full time occupation and satisfy the requirements that your earnings could cover your repayments.

If you do not have any CCJ's then I would assume there are lenders that are prepared to offer you a mortgage.

I would see an independant financial advisor specialising in mortgages to help you choose the one that's best for you.

Maybe you could ask a wee bit extra to cover your debts, get a clean slate

Best of luck

Answer 6

It depends on how large the debt is and on the morgage company. If it is quite a large debt they may give you one as long as you have not defaulted any payments, but you might not get a very favourable rate though. If you have county court judgements against you or a bad credit rating then I would say no.

Answer 7

why would you want to get into more debt with a mortgage? but yes the high interest lenders will give you one

Answer 8

in short, yes.
you don't have to settle for high interest rates either.

Just like the unsecured loan industry, things are changing for mortgages, too.

You can find out more information regarding bad credit mortgages on Mortgage Link, or fill in the call back form and get one of their advisors to talk to you.

Answer 9

Yes, but mortgage lenders will take it consideration how much you owe already when looking at how much they would be prepared to lend you. They will also consider your credit history.

Answer 10

Yes, u will need to see a financial adviser