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

moneynoob

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.

herbiesjp

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