Combining debt with a new mortgage

billyg123

Hi Everyone, Im completely new to this and looking for genuine friendly advice.

Im looking to buy a property later in the year, ideally I would like to consolidate a loan into the amount I borrow as a mortgage.
What are the opportunities to do this, the limits, pros and cons. Cheers

sparkle84

What size is the mortgage going to be, how much deposit do you have, how large would the loan you want to take be?

billyg123

sparkle84 wrote:

What size is the mortgage going to be, how much deposit do you have, how large would the loan you want to take be?

House price around 80-90k, loan about 30k, uncertain of what deposit I will be able to field at the moment

Chortle_2

Unless you find a property that is an absolute bargain, and up for sale for £30k less than the actual market value - as agreed by a surveyor, I don't see how it is even possible

If, for example, you bought a property worth £100k - you would be offered a mortgage of up to £90k normally (90% of value). They would not offer you £130k against a house worth only £100k simply because you wanted to consolidate a debt into it.

The only way to consolidate a debt into a mortgage, as far as I know, is if you already own the property, and have enough equity to cover the amount of the consolidation - it doesn't work with new mortgages.

billyg123

Chortle wrote:

Unless you find a property that is an absolute bargain, and up for sale for £30k less than the actual market value - as agreed by a surveyor, I don't see how it is even possible

If, for example, you bought a property worth £100k - you would be offered a mortgage of up to £90k normally (90% of value). They would not offer you £130k against a house worth only £100k simply because you wanted to consolidate a debt into it.

The only way to consolidate a debt into a mortgage, as far as I know, is if you already own the property, and have enough equity to cover the amount of the consolidation - it doesn't work with new mortgages.

Thanks, that was the impression I had, and it makes complete sense. I just wondered if there were anyways around it.

sparkle84

Well I would forget about it at the moment you don't have a chance of being able to do this as you be putting youself in negative equity straight away - to be honest with debt of £30k you wont get a mortgage anyway, why not post of SOA on here see if people can help with saving money.

billyg123

sparkle84 wrote:

Well I would forget about it at the moment you don't have a chance of being able to do this as you be putting youself in negative equity straight away - to be honest with debt of £30k you wont get a mortgage anyway, why not post of SOA on here see if people can help with saving money.

Forgive my ignorance but what does SOA mean?

sparkle84

Statement of Affairs your income and outgoings basically. People on here are really great at helping you save money. You will also get really good advice on repaying your debt so you can move on with your life. Don't be put off by your mortgage plan not working you can get excellent advice on here

billyg123

sparkle84 wrote:

Statement of Affairs your income and outgoings basically. People on here are really great at helping you save money. You will also get really good advice on repaying your debt so you can move on with your life. Don't be put off by your mortgage plan not working you can get excellent advice on here

In which section would I post it and how much detail should I go into?

in*the*red_6

Friends of ours have just bought a house as first time buyers with roughly the same amount of debt as you and the house of similar value. They were allowed to borrow the deposit, fees and an unsecured loan to pay off part of their debts. They asked for our advice and we said not to touch it with a bargepole but they've still done it. Amazingly there are lenders out there who will give mortgages to people with 30+k of debt and no deposit at all (this isn't a sub prime lender either)!

billyg123

in*the*red wrote:

Friends of ours have just bought a house as first time buyers with roughly the same amount of debt as you and the house of similar value. They were allowed to borrow the deposit, fees and an unsecured loan to pay off part of their debts. They asked for our advice and we said not to touch it with a bargepole but they've still done it. Amazingly there are lenders out there who will give mortgages to people with 30+k of debt and no deposit at all (this isn't a sub prime lender either)!

Which lender was it? And what are the interest rates, fixed, capped etc?