Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • neneromanova
    • By neneromanova 13th Jan 18, 8:24 AM
    • 2,871Posts
    • 6,824Thanks
    neneromanova
    Paying off debts using equity on exchange
    • #1
    • 13th Jan 18, 8:24 AM
    Paying off debts using equity on exchange 13th Jan 18 at 8:24 AM
    I'm a little confused on how I can do this.

    We're currently £33k in debt (slowly coming down and being transferred around to 0%cards). We are wanting to move this year and, if we sell for what we hope we can we'll have £100k equity for the debts and new house. But obviously we can't get a mortgage if we have these debts. Is there anyway that we can get a mortgage on the proviso that the debts get paid off using the equity on completion of the house sale?

    This will be our 1st time selling and buying, and we were FTB 7 years ago with no debts so I have no idea on this kind of thing.

    Thanks
    DD1 Born 31st March 2008
    DD2 Born 29th August 2010
    DS1 Born 28th October 2013
    Got Married 15th September 2012 Now Mrs Clark


Page 1
    • amnblog
    • By amnblog 13th Jan 18, 8:49 AM
    • 10,180 Posts
    • 3,980 Thanks
    amnblog
    • #2
    • 13th Jan 18, 8:49 AM
    • #2
    • 13th Jan 18, 8:49 AM
    Yes you can, but heavy current unsecured debts will preclude some lenders offering to you.

    Worth consulting a broker for this one.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • getmore4less
    • By getmore4less 13th Jan 18, 8:57 AM
    • 31,169 Posts
    • 18,682 Thanks
    getmore4less
    • #3
    • 13th Jan 18, 8:57 AM
    • #3
    • 13th Jan 18, 8:57 AM
    The bigger issue is you have been funding the current mortgage with debt.

    Unless that has been fixed can you afford to move.
    • neneromanova
    • By neneromanova 13th Jan 18, 9:10 AM
    • 2,871 Posts
    • 6,824 Thanks
    neneromanova
    • #4
    • 13th Jan 18, 9:10 AM
    • #4
    • 13th Jan 18, 9:10 AM
    No we're all good money wise, it was just for a new kitchen, new guitars, new effect pedals etc. Just spending above our means. We've gotten a lot better at not spending now, just want to start a fresh with no debts, leaving us with £1500 left over after every bill has gone out.

    EDIT: We've been paying off cards monthly, but with £400 interest a month and no one letting us get a 0% until now, we haven't really been able to make a dent in anything til now.
    Last edited by neneromanova; 13-01-2018 at 9:12 AM.
    DD1 Born 31st March 2008
    DD2 Born 29th August 2010
    DS1 Born 28th October 2013
    Got Married 15th September 2012 Now Mrs Clark


    • Thrugelmir
    • By Thrugelmir 13th Jan 18, 11:22 AM
    • 56,845 Posts
    • 50,193 Thanks
    Thrugelmir
    • #5
    • 13th Jan 18, 11:22 AM
    • #5
    • 13th Jan 18, 11:22 AM
    No we're all good money wise, it was just for a new kitchen, new guitars, new effect pedals etc. Just spending above our means. We've gotten a lot better at not spending now, just want to start a fresh with no debts, leaving us with £1500 left over after every bill has gone out.
    Originally posted by neneromanova
    Lenders might require some convincing that this is the case. There'll have visibility on the fact that you've been juggling round % cards. The Debt Free Wannabe forum is a good place for support and advice as to how to tackle the issue. The more you can do for yourselves the easier it will be for you to achieve your dream.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,895Posts Today

8,894Users online

Martin's Twitter