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Paying off debt from sale of house
Mover555
Posts: 28 Forumite
Hello, we're selling our house and will be using part of the proceeds to pay back debt and some of the rest as a deposit on our next house. Will a mortgage company lend us based on existing debt or will they overlook that if I explain that it won't be there once we've sold?
I'm concerned that we won't be able to borrow enough for the house we want. The mortgage calcs show we can borrow what we need but only if we have no debt.
Thanks
I'm concerned that we won't be able to borrow enough for the house we want. The mortgage calcs show we can borrow what we need but only if we have no debt.
Thanks
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Comments
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Depends on the lender you choose.
Most will ignore if "to be repaid on or before completion" of new mortgage.
One or two won't.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks kingstreet, that is good to hear. I'm not fixed on who to go with and am considering Chelsea or Principality.0
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As Chelsea is part of Yorkshire Building Society Group, tread carefully and establish in advance what position they will take on this.
Principality, I don't know but expect them to be fine.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks again - we're already with Chelsea but not sure they're best anyway for our next buy. I was going to speak to them but not sure it's worth having the check on my credit file.
Do you know how many approvals in principle you can have before the searches on my credit account become too many? I already did two with tesco bank a month ago tho we likely won't use them now as the market seems to be changing daily.0 -
The only thing to suggest is "as few as possible" as no-one knows the rest of your credit profile and how it might be affected.
Why don't you speak to a broker instead?
Going from direct lender to direct lender just means it's always going to be put to the computer to decide, rather than an individual who knows the lenders' criteria.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
We did this with halifax paid debt off on completion had to give solicitor details and accounts for debt and they paid them day of completion ..0
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