Help needed quickly

Wide_Eyed_and_Clueless

We have just about sold our house for £112,000 and are still due £35,000 costing us £450 a month for the next 8 years, on the current mortagage which will give us around £75,000 profit to plough into a new house we have seen. The new property would cost around £160,000 and needs around £30k of work to turn it into the house we want. We also have outstanding debt of around £10,000 which costs us around £350 a month for two years then £170 for a further three years

We are in our 40's and don't want to take out a mortgage for much more than 20 years. We also don't want to pay out any more than we are already doing.

What advice can you give and what would you do in our situation

Do we need to pay off the old mortgage or can we keep that going in conjunction with a new one?

Can we pay off some of the old mortgage to bring it down a bit?

Would you pay off the other debt from the house sale profits?

Do we also have to take the new mortgage with the same lender or can we go somewhere else to get the remainder mortgage topped up?

Thrugelmir

Your existing mortgage will normally be redeemed when the property is sold. Some mortgage products are portable and can be transferred to a new property. You'll have to read your mortgage documents or speak to your existing lender to determine this.

Use the proceeds of the house to clear your other debts.

You'll need to apply for a new mortgage for the property you wish to purchase. Though part could be ported as above.

You could keep £30k back from the proceeds to cover the cost of the renovation work.

Then using what's left as a deposit, paying the remainder borrowed back over a 20 year term.

saintgerry

Have you tried just asking your bank or a reputable financial advisor these questions? It seems that you need to have a lot more info before making your final decision and I would hold off just now, better to miss out on this house than rush in and regret.

dimbo61

To get the best deals you need to put down a 20/25% deposit so thats £32,000/£40,000 out of your profit from selling your existing property.
You will also need to clear the £10K you have ( affordability)
That still gives you about £25K to have the work done on the new property
BUT how have you run up £10K in debts and are you living above your means when you have a mortgage of £35K
What will happens when you have a mortgage of £120K