Applications for mortgages

Millie321

Hi all,
We are in the situation where we have such big debts, we are considering selling and buying a cheaper house to pay them off.

I have gone hazy at the order in which things are done. Do i apply for the mortgage now, and is that set in stone even if it takes a year to find the home to buy? or will the reassess our finances?

Basically we think we have 100k mortage and 115k equity. We would use 10k moving fees, 40k to pay off debts leaving £65 deposit, and we'd just require the 100k mortgage again.
But as we have 40k of debts (credit cards) are we ridiculous to even think a lender would lend to us?

Our combined income is 46k.

Thank you in advance.

dimbo61

I think you need to sell your property first and then clear your credit card debts and other debts and then start looking for the cheaper property ( rent for 6 months).
Have you got any CCJ,s or defaults on your credit score ( you could get a copy of your credit score for £2).
Even after paying off your debts you would still have a good deposit and with an income of £46K should be able ( subject to credit score) to get a £100K mortgage.
You also need to stop spending more than you earn !!!

VIGILANT22

First check to see if yr current mortgage is portable........On application for a decision in principle you can indicate you are reducing your debts...