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    • TB411
    • By TB411 4th Mar 18, 4:42 PM
    • 1Posts
    • 1Thanks
    Moving home with equity and debt
    • #1
    • 4th Mar 18, 4:42 PM
    Moving home with equity and debt 4th Mar 18 at 4:42 PM
    Hi all, due to issues with harrassment by our neighbours, we need to move and move quickly.
    We currently have a mortgage which is sitting at approx £91K and the house is worth approx £155-£160 (another neighbour with same house recently moved and got this). This means we have at the least £65K in equity. Unfortunately, we also have about £20k in car loans and credit cards *sigh*. My husband earns £19K a year plus overtime of about £3k and I earn £8200 plus £6K secured income from my ex husband.
    According to the online cals unless we pay off the debt, we'd struggle to get a mortgage. So my questions is - can we get a new mortgage with £40K deposit and pay off debts with the rest?
    Anyone been in a similar position and come out of it OK?
    Many thanks for help in advance!!!!!
Page 1
    • Thrugelmir
    • By Thrugelmir 4th Mar 18, 6:12 PM
    • 57,891 Posts
    • 51,262 Thanks
    • #2
    • 4th Mar 18, 6:12 PM
    • #2
    • 4th Mar 18, 6:12 PM
    Have you considered the option of buying a lower priced property. This at least gives you the opportunity of getting yourselves financially straight.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • new_owner
    • By new_owner 4th Mar 18, 8:15 PM
    • 211 Posts
    • 75 Thanks
    • #3
    • 4th Mar 18, 8:15 PM
    • #3
    • 4th Mar 18, 8:15 PM
    You could always sell move into rented clear the debt and take some time finding the right property?
    • enthusiasticsaver
    • By enthusiasticsaver 4th Mar 18, 9:57 PM
    • 5,984 Posts
    • 11,898 Thanks
    • #4
    • 4th Mar 18, 9:57 PM
    • #4
    • 4th Mar 18, 9:57 PM
    There is no reason why you couldn't do that.

    Your best bet is to see a mortgage broker.

    If you buy a house in roughly the same price bracket though this would mean a bigger mortgage. As you have built up debt on a £91k mortgage what is going to stop you building up debt again when you have a bigger mortgage payment.

    I am not sure many lenders will take your £6k maintenance into account when considering income multiples.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to
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