advice needed re:equity, debt and moving

sussexhomeowner

Need some advice please. Our situation is that we bought just before the crash and have been waiting longer than we wanted to move to a bigger property. We have a good amount of equity (about £170,000), but 2 loans (16k combined) and a large agreed overdraft of £10k which we have had for about 3 years and just don't seem able to pay down. We also have 2 cc's which have low balances.
We have worked out that we can afford to pay off the overdraft and one of the loans on the sale of our house, and still have a good deposit on a new property, but will they still approve us? We both have good credit scores and have never missed a mortgage/cc payment.
The thing that worries me the most is the overdraft. Will they just look at our bank statements and laugh, or will they be able to write in some kind of agreement whereby we promise to pay it off on the sale of this house. It would be nice to be (almost) debt free (well apart from a mortgage) and start with a clean slate without the extortionate fees on the overdraft and loan.
Really don't know what to do at this point. We have 2 dependents and combined salary of £55,000. Please help!!

Thrugelmir

How much is your existing property worth?

How much are you wishing to borrow on the new property?

How do you intend funding the moving costs including legal fees etc?

sussexhomeowner

current property is worth £285,000

Pay off mortgage of £115,000 and we will be left with £170,000. Less £15,000 moving/legal fees leaves about £155,000. Pay off overdraft and one of our loans leaves £135,000 deposit on new property.
New property is £350,000 so looking to borrow £215,000

thanks.

hcb42

that's hefty borrowing on £55K, many lenders might consider that unaffordable..

DVardysShadow

hcb42 wrote: »

that's hefty borrowing on £55K, many lenders might consider that unaffordable..

And having 16k of loan and not able to shift a 10k overdraft on 55k salary suggests that you are already well stretched.

My suggestion is that you take a good hard look at your monthly income and expenditure and put in place a plan to pay down the overdraft. Once you have done that, you will have surplus income and you will know how much more you can put to a mortgage.

neverdespairgirl

sussexhomeowner wrote: »

current property is worth £285,000

Pay off mortgage of £115,000 and we will be left with £170,000. Less £15,000 moving/legal fees leaves about £155,000. Pay off overdraft and one of our loans leaves £135,000 deposit on new property.
New property is £350,000 so looking to borrow £215,000

thanks.

This isn't meant to be rude, but something to think about. On your current level of borrowing, you've racked up a couple of loans and an overdraft you can't manage to pay off, so how will you handle a higher mortgage?