FTB - Savings/Debts

M

musicfan

Registered User
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137
Hi there
Myself and the other half hope to purchase a house for the first time......

We have a joint income of approx €60K p.a and have accumulated savings of approx €60K.

However, debts amount to abt €20K. Does anyone know if I should pay off debts from savings before I approach banks etc in a bid to help me in getting mortgage approval?

Or could I incorporate debts into mortage to still ensure savings are there for deposit and other costs associated with buying a house?

Hoping to purchase house in region of 300K.

Thanks
 
Pay off your debts not for the bank but you would save more money that way. Personal loans interest rates are around 9% to 20% where your mortgage is 5% to 6%, this would mean a saving of 2'000 euro a year and 40k deposit 13% is plenty
 
I agree with Niallm.

There's also a point that a mortgage lender will take the monthly repayments on your debts into account when deciding how much of a loan to offer you. You'll get a bigger loan with no debts than with.

Liam D. Ferguson
www.ferga.com
 
Was thinking that myself but was advised by somebody to hold off on clearing any debts until I speak to a mortgage broker.......
 
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