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Can I take out a mortgage on a property I own outright?

Basically I am repaying some credit cards, overdrafts and a personal unsecured loan. These accounts unfortunaly got passed to collection agencies but I have negotiated monthly repayments with them, which have been kept to for approx the last 6 months.

I would like to know if I would be able to obtain a mortgage on the property I currently own to clear these debts and take advantage of the much lower monthly repayment. I am in full time employment taking approx £31k per year before tax.

Current property is valued at approx £300k with NO mortgage, I would be looking to borrow around £30,000 to clear £25,000 of unsecured credit, the remainder is for home improvement as we plan to move within a year.

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Yes you can do

    The rate offered will depend very much on what your credit history is like.

    If you are thinking of selling make sure you have got a scheme with no penalties attached to it

    HTH
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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