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sell house to clear debts and get new mortgage
allan1979
Posts: 8 Forumite
Hi,
any advice would be appreciated. Im thinking of selling my house and clearing all my credit card/loans. Ive now got two kids and i really need a 3 bed house rather than 2 bed flat that im currently in. If i sell my flat i will clear all my debts and have maybe £5k or £6k left over. I can move in with my parents for a few of months which would see me able to put by £10k added to the 5 or 6k for a new deposit. Any ideas how lenders would look at this? Would it be as straight forward as i seem to think or would they still take a dim view that i ran up debt in the first place? My credit rating (i know the score doesnt matter) shows that i pay all my bills and such (5 positives) but that im near my credit limit on my cards and that i havnt really reduced my total borrowing in the last 12 months. Im currently with the halifax and have been a customer for 30 odd years and my wages are £38k a year so again i dont envisage too much trouble but again when ive paid off all my commitments would this look good on my file or look like ive panicked and started again?
Thanks again
allan
any advice would be appreciated. Im thinking of selling my house and clearing all my credit card/loans. Ive now got two kids and i really need a 3 bed house rather than 2 bed flat that im currently in. If i sell my flat i will clear all my debts and have maybe £5k or £6k left over. I can move in with my parents for a few of months which would see me able to put by £10k added to the 5 or 6k for a new deposit. Any ideas how lenders would look at this? Would it be as straight forward as i seem to think or would they still take a dim view that i ran up debt in the first place? My credit rating (i know the score doesnt matter) shows that i pay all my bills and such (5 positives) but that im near my credit limit on my cards and that i havnt really reduced my total borrowing in the last 12 months. Im currently with the halifax and have been a customer for 30 odd years and my wages are £38k a year so again i dont envisage too much trouble but again when ive paid off all my commitments would this look good on my file or look like ive panicked and started again?
Thanks again
allan
0
Comments
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The credit cards might be a problem, if you're only paying minimum they will count against you. But since you have no missed payments etc you should be able to get a mortgage once you've cleared down the credit cards.
I don't think selling the house and living with your parents will do you any harm as far as your new application goes, but I'm not a mortgage expert, others might know more...Changing the world, one sarcastic comment at a time.0
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