Moving and paying off Secured and unsecured loan what do i put in mortgagte app?

Lisa2384

Good afternoon,

Im after some adice if possible. My current situation is Credit rating Good for both me and Hubby. WE have a house worth approx £135k, secured loan of £13k , Unsceure loan of £7k. We are wanting to upsize to a house worth £250k. Between us we earn £75k so hoping the upsizing cost wont be an issue. My question is having tryed to remortage a few years back we didnt have enough equity. With moving how do i complte the mortage application as i know we are unlikely to be approved with the 2 loan and mortage as they are £2000 a month. We will clear both laons but when we suibit the applciation will ahve them still so unsure if they would accept an applciation? we are wantin to secure an AIP agreement before we put our house on the market, last thing i wnat to happen in we sell our house and cant afford to buy a bigger one! I hope this is enough info if anyone can offer advise or been in a simliar situation.
Thanks Lisa

kingstreet

Q - Will this commitment be cleared in full, on or before completion - Y/N?

A - Y

Lisa2384

Thats brillaint thank you.
One final question would you advise applying for the mortgage prior and getting the agreement/decison in principle before house hunting? We are wnating a new build from a new development roud the corner. I know some people tend to do it after they put in an offer, and hope for the best
Lisa

dimbo61

Do you have an idea of what kind of deal you want ?
Fixed, tracker, offset, 2/3/5 years ?
Better to know how much you can borrow first
Broker

Lisa2384

Hi,
No im not really sure its been so long since we took out our last Mortagae , were currenlty with the orginal Northern Rock whichi belive is now NRAM, we were on a 5 year fixed which has ended. but rates dont seem to have changed at all since it ended ive put it down to NRAM not being able to offer anything diff as no longer aorund.
If i was to go with my instinct id say fixed again but open to all deals, are we best booking an appoiebemt with a brooker and going form thier? We have arrnaged a couple more valuations so we have a average to work with. The £135k valuation was in Sept last year and thing may have moved either way.

dimbo61

So you have a property worth £135,000 and debts of £20,000 so perhaps a deposit of £110,000 after selling costs.
You want a property of £250,000 so £140,000 mortgage which is 2X Income and should be NO PROBLEM.
However why did you go to Northern Rock in the first place? Poor credit history?

Thrugelmir

How much do you owe on the mortgage?

Do you owe anything to credit cards?

lonestarfan

dimbo61 wrote: »

So you have a property worth £135,000 and debts of £20,000 so perhaps a deposit of £110,000 after selling costs.
You want a property of £250,000 so £140,000 mortgage which is 2X Income and should be NO PROBLEM.
However why did you go to Northern Rock in the first place? Poor credit history?

I don't read it that they have £110,000 equity. I don't think its mortgage free. I think there is a mortgage on it so it's not clear what the equity is.

dimbo61

Hi Loanstarfan,
You may well be right!
I read the Secure loan as the mortgage! at £13K and unsecured as £7K.
No mortgage debt given

Thrugelmir

dimbo61 wrote: »

Hi Loanstarfan,
You may well be right!
I read the Secure loan as the mortgage! at £13K and unsecured as £7K.
No mortgage debt given

But the post does say

My question is having tryed to remortage a few years back we didnt have enough equity.