Debt consolidation mortgages - do they exist?!

Legendbully

Hi there,

I have been doing some research on 'debt consolidation mortgages' on the net and as far as I'm aware, this could be an option for me... but does anyone know more about them than I do? Should this be an option I consider or will it do me more harm than good?

I am currently in debt to the tune of £16,000 (loan and credit card) and am looking to get onto one of these part rent part buy schemes to buy a share in a flat. There are flats availiable near me and I would be looking to get a mortgage for between a 25-50% share, which would probably be between £30-60k for the mortgage, plus the £16k debt consolidation... so I'd need £80k max for a mortgage at this stage.

I'm with HSBC bank and have already been offered a 90% mortgage in principle for up to £90k, however I need a deposit (which I dont have) and they didnt mention anything about 'debt consolidation' when then offered me that!
I have a good, lengthly relationship with HSBC so may go back to them to see what else they can offer me and my loan is with them as well. I dont think they do 100% mortgages or debt consolidation mortgages tho :mad: so sort of stuck with what I do next!!!!

So... any ideas people????? Your help or advice would be MUCH appreciated.

Thanks,

Anna xx

p.s. I live in Gravesend Kent, if you know any good mortgage brokers/advisors

Cannon_Fodder

Many posters on here have gone for 90% mortgages, having the deposit, only to be disappointed when the process moves from "in principle" to "real", being told "you'll have to pay off your debts before we advance the money"...

The lenders concern is that the debt only exisits to fund the deposit, which defeats the object of asking for a deposit. Should you fall into arrears, you have no real equity in the house, to repay them when they repossess.

If you wanted to spend £60k on the house, 90% from them (£54k) and 10% from you (£6k) and asking them to roll up the £22k debts on top (£16k+£6k as you'd presumably have to borrow the deposit), you'd be borrowing £76k...

Asking a lender to fund £76k on a £60k property portion means a 126% mortgage.

As you say, 100% mortgages don't exist...

_Andy_

If you don't have a deposit HSBC aren't going to lend you anything.
As you don't have a deposit you need to keep saving and working at reducing the large amount of debt you have.