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    • kelvin.willis
    • By kelvin.willis 12th Sep 17, 4:45 PM
    • 3Posts
    • 0Thanks
    kelvin.willis
    Mortgage with credit card debt
    • #1
    • 12th Sep 17, 4:45 PM
    Mortgage with credit card debt 12th Sep 17 at 4:45 PM
    I have posted on the debt free site, but thought my query may be best placed here.

    I have currently accrued approx £16,000 of debts on credit cards.

    I have approx £45k - £55k of equity in my property.

    I am thinking of selling this house and purchasing one for approx £22k less, therefore giving me money to settle the credit cards and use the remainder for the purchase and selling (calculations show this is doable).

    My question is, is this a good idea, and what impact will having these debts have on any mortgage application? I am with halifax and know that for others they have put a clause in that the debts must be paid off once the house sale has gone through - is this still the case?

    Online calculators with the debts would not allow me to purchase a property even at a lesser value, but is more than enough without the debts (which there would be zero if i downsized).

    Any advice greatly appreciated.
Page 1
    • ThePants999
    • By ThePants999 12th Sep 17, 11:45 PM
    • 792 Posts
    • 894 Thanks
    ThePants999
    • #2
    • 12th Sep 17, 11:45 PM
    • #2
    • 12th Sep 17, 11:45 PM
    Why would you move house just to release equity? Can't you just borrow more on your existing mortgage?

    Moving home to free up £22K sounds an extraordinarily bad idea to me - by the time you've paid stamp duty, estate agent's commission, conveyancing fees and disbursements, removals costs and whatever needs doing in the new house, you've eaten a huge chunk of it. Even before you've accounted for the ludicrous amount of your time that it takes!
    • 5557223
    • By 5557223 13th Sep 17, 11:23 PM
    • 27 Posts
    • 6 Thanks
    5557223
    • #3
    • 13th Sep 17, 11:23 PM
    • #3
    • 13th Sep 17, 11:23 PM
    Why would you move house just to release equity? Can't you just borrow more on your existing mortgage?

    Moving home to free up £22K sounds an extraordinarily bad idea to me - by the time you've paid stamp duty, estate agent's commission, conveyancing fees and disbursements, removals costs and whatever needs doing in the new house, you've eaten a huge chunk of it. Even before you've accounted for the ludicrous amount of your time that it takes!
    Originally posted by ThePants999
    Exactly that
    +1
    • glosoli
    • By glosoli 13th Sep 17, 11:38 PM
    • 633 Posts
    • 366 Thanks
    glosoli
    • #4
    • 13th Sep 17, 11:38 PM
    • #4
    • 13th Sep 17, 11:38 PM
    It may be possible that there isn't sufficient equity in his property to release some for debt consolidation. In terms of the impact on the application, so long as there isn't any adverse credit history, then it shouldn't have an impact.
    • csgohan4
    • By csgohan4 14th Sep 17, 7:38 AM
    • 3,771 Posts
    • 2,353 Thanks
    csgohan4
    • #5
    • 14th Sep 17, 7:38 AM
    • #5
    • 14th Sep 17, 7:38 AM
    might want to hit the debt free wannabee forums to really hit that debt down
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • andrewmp
    • By andrewmp 14th Sep 17, 8:16 AM
    • 1,534 Posts
    • 789 Thanks
    andrewmp
    • #6
    • 14th Sep 17, 8:16 AM
    • #6
    • 14th Sep 17, 8:16 AM
    Why would you move house just to release equity? Can't you just borrow more on your existing mortgage?

    Moving home to free up £22K sounds an extraordinarily bad idea to me - by the time you've paid stamp duty, estate agent's commission, conveyancing fees and disbursements, removals costs and whatever needs doing in the new house, you've eaten a huge chunk of it. Even before you've accounted for the ludicrous amount of your time that it takes!
    Originally posted by ThePants999
    Quite often there's no stamp duty to pay.
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