Downsizing due to debt. Will I get a mortgage?

ClaireyFairy

I have managed to run up quite a bit of debt (£20,000). I have never missed a payment and can afford the payments, I just dont like the milestone around my neck.

When I bought my current property, it was on a shared equity scheme as I had no deposit whereby I pay the house builder 25% of the sale of the property. I bought it for £115,000 and had a mortgage of £87,000. My mortgage currently stands at £80,000.

My current property has been valued by three EA who all say that it is now worth between £130,000 to £140,000.

I have seen a property I like on the market for £90,000. It has been on the market for almost two years, so I was thinking about offering £85,000 for it.

I am currently on a fixed rate mortgage. My mortgage advisor tells me that I am able to port my current mortgage and that I would only need a 5% deposit.

My question is, am I likely to get turned down when I try to apply for the mortgage when I have credit commitments of about £500 a month, even though I will be able to clear these with the extra money I get from the sale of my current place.

Thrugelmir

Your mortgage advisor should be able to steer you through the situation.

Well done for tackling your debts head on in a pro-active way.

GMS

Nobody can tell you if you are likely to be turned down other than the lender. Your credit would be proposed to be cleared with the new mortgage which may help.

You have a mortgage broker at present so why not let them guide you through it? They will know your circumstances and be able to advise you. Unless you are willing to disclose all of your details to the point of a full factfind on a public forum you will not get proper advice.

Well done for addressing your potential problems. Hopefully you and your broker will find a solution for your needs.