Buying a house while in debt?

Ok DF told me the other night that to buy a house in the UK you have to be completly debt free...meaning no car loans, credit card debt, student loans or any other kind of debt.  I find this completly ludicrous.  Is it true???  I truly don't know and it just sounds like something he might have heard wrong.

It's definitely not true.  (I used to be a mortgage advisor).

Really??  Hmm I wonder where he got that crazy idea..I told him it didn't sound right but he was insistant (sp) about us not being in debt because we would never get a mortgage.  I kept saying "So you are saying if you have a car loan we can't get a house??"  he said "That is exactly what I am saying, in the UK you can't have any debt when you buy a house."  I knew it was wrong.  Thank you so much for your help.

Whatever debt you may have, they off-set against how much you can borrow.
There's a formula some banks use... i cant remember it now, as it's been years since i used it.

But you certainly can (and i have done!) get a mortgage when you have other debts... as long as your income can support them all! 

My bank in the US uses a 50-50 ratio.  You can't have more than 50% of your income paying down debt (mortgage, car, credit cards).  I haven't borrowed money in the UK but I'm sure it's probably something similar.

This is absolutley NOT true!

Most mortgage applications will include a section for you to declare current debts and their amounts. These details are then assessed by the lender as to whether you're application could be successful or not. And considering just how many Brits are happy to purchase items on HP, Credit Cards, Loans, you can safely be assured that a very very high proportion of new mortgage applications people have a substantial amount of debt. Being mortgaged to the hilt on top of that is almost blaze (blahzay).

Kristi - I know quite a few US lenders and Canadian ones, use what I think is sensible judgement in the 'ability' to pay system. They will look at your income and outgoings and decide how much they can lend you. This to me cuts out potential 'bad borrowers' i.e the ones on maxed credit cards, loans etc and still get a mortgage, further placing them with more burden.

As far as I know, no mortgage lenders in the UK operate in this way, although with the explosion over the last 5-10 years in lending, I wouldn't be surprised there actually are 1 or 2 lenders doing this kind of pre lending judgements.

Zuesy99 - you can show this thread to yer other half! and then run off to go apply for a mortgage!

Cheers! Dennis! West London & Slough UK!!

It sounds to me like your DH is trying to tell a little, white lie to prevent you from taking out debts.  Are you trying to get him to buy you that 10 carat diamond ring? 

Ha Ha,

I did tell him about this when I spoke with him this morning.  He told me about pay brackets and since he is in the low pay bracket(hey aren't we all, and if you aren't I am the slightest bit jealous) he might not get a mortgage for enough to buy a decent home.  I told him that I will be working when I get over there (as soon as it's legal of course, or unless we hit the lotto) so we willl have more options.  The thing is I am almost debt free...with the few standing student loans, and a car loan (which will be done once I sell the beastly thing) but he is not, he has a credit card bill (cue the morbid organ music now).

As for me wanting to take on more debt...naawwww not me? (innocent eye blink)  I didn't get to the 10k ring either(hey I do dishes and clean I don't want that thing in the way I opted for then 3 stone smaller sparkler).  I just want to own a home and he was scareing me thinking we had to be absolutly debt free.

Thanks everyone!