Moving home mortgage and consolidating debt

maggsy1

Hi guys, new to the forum so please forgive me. I currently have a mortgage with my partner and we are looking to move to a bigger property. However I have incurred a lot of credit card debt from my own bad spending. Will mortgage lenders allow debt to be consolidated in a new mortgage how does it all work?

Stats:

£15,000 of debt - paying £200 a month on minimum payments - however able to save £200 in my savings (I know ur gonna say pay off more but I like a pot for emergencies)

Should have £20,000 equity in current property, basically I would rather put the £200 a month I'm currently paying to pay a higher mortgage allowing me to still save as well. Is this possible obviously I'm wanting to borrow around £170,000

Any advice would be welcomed sorry if I'm a bit unsure/confused

Thrugelmir

With lenders testing affordability at 7% interest rates. If you are only able to make minimum repayments on your debt. Then the likelihood of getting an even bigger mortgage is slim. The issue being compounded by the fact that debt consolidation is generally not a policy that lenders now allow.

kingstreet

You will have less then £5k deposit (after fees) if you use £15k of that £20k equity to repay debt. That will not be enough. You will need at least 5% for a 95% mortgage.

Paying off as much of the debt as possible would be a good idea, but too much and you will kill your plan stone-dead.