Remortgage/Moving House - Likelyhood?

Sprogladite

Hi All,

Myself, my partner and our baby daughter live in a 2 bed bungalow and have realised we really need more space imminently

Situation is as follows:

I have a 21 year mortgage left on the property, paying £586pcm at 2.69% with Santander. This fixed term deal comes to an end in April.

The property was bought at £177,450 in 2011 however conservative current estimate on its value at £210,000, I had a sizable deposit towards this. Current outstanding mortgage is at £104,850 or thereabouts.

I earn £26000 a year before tax and have £9000 in credit card debt (both balance transfer cards not being actively spent on and both on 0% until the end of next year at least). I am currently paying £200 a month towards this, which will increase to £450 once my partner is back to work after maternity leave.

We would potentially be looking at a property around the £240,000 mark and I am considering applying for one of a number of scenarios:

1) Scenario 1 - Ideal

Find a 3 bedroom house at £240000, borrowing enough to consolidate the credit card debt

2) Scenario 2

Remortgage when my current deal comes to an end, just borrowing enough to pay off credit card

Or

3) Scenario 3

Stay put, remortgage to make the most of a lower % and pay off credit card with the saving.

We do need a bigger place though I understand the implications of moving unsecured debt to secured however.

Any thoughts would be appreciated. Would I be favourable to a lender given the situation I am in? No CCJs or defaults, no missed payments. Noddle states 3/5 however haven't checked Credit Expert for a year.

Thanks

TrickyDicky101

How much does your wife/partner earn when she is back working? Buying houses is expensive in terms of fees/costs. Do you have savings you could utilise or is all your worth tied up in the current property?

Sprogladite

She is on about 18k, however has an IVA until the beginning of 2016 so cannot be placed on the mortgage until then.

No savings unfortunately, asset rich and cash poor, as they say.

dimbo61

Worry 1 " I earn £26000 a year before tax and have £9000 in credit card debt "
Worry 2 Earn £26K before tax and already have a £105K mortgage
Worry 3 The £9,000 Credit card debt
Now you want a BIGGER mortgage
Unless your partner can earn good money when she goes back to work FULL TIME! you will really struggle

Thrugelmir

Sprogladite wrote: »

No savings unfortunately, asset rich and cash poor, as they say.

Then your best route is to tackle your existing debt. Then start saving. As moving house is an expensive business.

Considering you are are only looking at a property £30k more expensive. Is extending your extending property an option?

By overpaying your mortgage for a while. You could build the equity to release at a later date to fund the works.