Paying off mortgage shortfall and wishing to buy

Charlotte

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We sold our house 4 years ago and are paying the 42k that is outstanding. We are currently looking to buy and have 22k in savings. While I earn a very good salary and my husband has a permanent and pensionable position we have a 4k overdraft that we utilise every month.
Having done our sums we know that a mortgage would be cheaper than renting and paying off the loan but are concerned that having an overdraft will mean we won't be eligible for a mortgage. Looking for some guidance please. Thanks
 
Between us we earn about 165k. We are looking at a house at 170k but needs to be entirely renovated so will need an additional 120k over a period of time to finish. We won't have rental costs while the work is being done as we will stay with family
 
€165k gross salary is €100k after tax.

Perhaps you should lodge some of your savings into your current account and not be paying overdraft interest while earning nothing on your savings.

You will need to save a bit more to get 300k but should be possible given your income levels.
 
Unfortunately the bank only agreed to let us sell our previous house with the negative equity debt of 60k (originally) if we kept 20k in a savings account until we cleared the debt.
 
For 300,000 you will need 60k for a deposit (20% as you're not first time buyers) and thus a mortgage of 240k. The repayments on that over 25 years at 5% would be approximately 1400 per month. You need to show the bank evidence that you can afford those repayments. 6 months of statements showing savings of 1400 per month would be a good start.
 
There is very little info given about the overall financial position.

A couple with no children (mentioned) and an income of €165k gross, why are you using your overdraft.
 
Frankly I am astonished that a couple on 165k are relying on a whopping €4000 overdraft every month.
 
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