Need a Mortgage but Drowning in Debt? Here’s What You Can Do
Do you need a mortgage while struggling with debt payments? You are not alone. In April 2024, there was a total debt of £4232 per person in the UK. If this includes you, it’s high time to consider your finances. A mortgage is a long-term loan that requires stable finances. Individuals with high debts do not qualify because of uncertainty. The loan providers deem you as a risky borrower because of your past borrowing experiences. So, yes, you need to bring down debts to get a mortgage cover. It is because debt affects how much you can borrow on a loan. For example, if you need a loan for a property costing £250,000 with £1,00,000 debt, you may get a low amount like £1,00,000 at high interest rates. Alternatively, if you apply for the same loan with just £10000 in debt, you may get instant approval at better interest rates. What is classed as debt in simple terms? Debt is a sum of money that you owe and must pay within a given time limit. It could be in the form of student lo...