Mortgage - a couple of questions!!!

jessicacox3

Hi,

I am thinking of selling my flat and paying up my debts with part of my equity and using the rest as a deposit for a house. Can someone please help with a couple of questions that I have regarding this?

• I need to pay my debts before I get my new mortgage - will I have to sell my property first, move back to parents and then reapply for a mortgage once my debts are clear?
• How much are lenders offering? Is it only 4 times my salary or would I get 4.5 or 5?

Thanks for your help!!!

ACG

You dont have to sell up and move out to pay the debts etc.

You can arrange to purchase a new property putting down however much deposit you wish to from the equity/sale of the old property. The rest of the equity can be used to clear the debts or whatever you want it to be used for. Basically you would be in a chain with the new buyer and the seller of the property your after.

some lenders will go above 4x but a lot depends on your circumstances - it might be worth speaking with a mortgage advisor.

Thrugelmir

Moving back to your parents would enable to save for a larger deposit and therefore inject more equity. A better strategy than banking on a high income multiple.