Mortgage / Debt Quick Query

Irishguy1978

Hi,

I've a house valued at 115k, I've around 80k remaining on the mortgage to run over 16 years.

My main problem is that I've credit card unsecured debt of 25k shifted over various credit cards.

Ideally I would like to move to a bungalow as my wife has become disabled but I'm not sure what position that I'm in?

the new house would be more expensive than our current house around 150k.

I earn 41k and my wife 21k a year, credit rating is excellent over lifetime but not sure if I can still get a mortgage and continue to pay off the credit card as normal or would my application for a new mortgage be difficult due to the high credit card debt?

Would the lender think it less of a risk with a good deposit and still lend or should I pay off the credit card and start again.

We have no other loans or credit agreements.. just the mortgage..

I'm clueless

Thrugelmir

At the current time the credit card debt may well be an issue. Why not tackle the credit card debt head on for a while. If moving house is your aim. Review your outgoings and cut back.

Irishguy1978

Hi,

thanks for the reply..

I've 10k on lifetime balance on barclaycard....

The rest are split on cc 0 % offers...

I guess snowballing is the only option for me and I will have to wait before I apply for a mortgage?

Thrugelmir

What ever the interest rate on the money borrowed. The debt has to be repaid at some point in time.

Repaying £25k (even if remains interest free) at £200 per month will take over 10 years.