advice please

mrs_motivated

As you can see from my signature i have high debts (although i have just got a credit report from Experian Which is showing my rating as excellant , score 972)

I am looking to move house and apply for a mortgage this summer and wonder who is the most likely to accept my application

Current mortgage (95K) - 15 years left to pay
Current House Value (£300K)


new property (£500K)

Need new mortgage (150K) repayment 15 years

joint salary (£83K)

any advice appreciated as do not want to be turned down.

Conrad

I would envisage this being straight forward. You say total mortgage required is £150k, so with those earnings there's plenty of room.

Lenders consider the annual cost of debts, not the balance. They deduct the annual cost form income before applying the lending multiple / affordability model.

herbiesjp

Or would you be clearing those debts via the sale proceeds?

And take out a slightly higher mortgage?

mrs_motivated

Thanks - feeling more optimistic.

No I wont be clearing debts with extra mortgage - will be using it to purchase house. Althougth the debts are high, they are manageable and i have no problem meeting the payments. Need a larger house, due to change in family circumstances.

JimmyTheWig

mrs_motivated wrote: »

Current mortgage (95K) - 15 years left to pay
Current House Value (£300K)

new property (£500K)
Need new mortgage (150K) repayment 15 years

To me, this says that you have at least £150k sitting in the bank.

i have high debts [£34k]

Why not use some of this money to pay off the debts right now? You could then take a higher mortgage, if necessary, with a shorter term.

getmore4less

mrs_motivated wrote: »

Thanks - feeling more optimistic.

No I wont be clearing debts with extra mortgage - will be using it to purchase house. Althougth the debts are high, they are manageable and i have no problem meeting the payments. Need a larger house, due to change in family circumstances.

Why not pay the debts that are more expensive than a mortgage.

It is madness paying more for borrowing than you need to. borrow more at the lower rate and just overpay it.

New house is £200k more than the old one mortgage is only £55k more where is the other £145k coming from?

mrs_motivated

The reason i am not clearing debts is - the debts are mine (therefore i feel responsible).

Not got £150K sat in the bank or else I would have cleared the debts - the £150 K is a gift (from a family member, to enable us to buy the house, not to clear my debt).