Moving home - pay off debt with proceeds of sale?

benstaton

Hi all,


Any advice gratefully received.


I hope to move house soon, paying off the Santander mortgage I have for my current property, and getting a new Nationwide mortgage for the new one.


I'm wondering if Nationwide will care if I pay off some debt with the money I make from the sale, which will, of course, reduce the deposit I have for the new property. I'm also thinking about keeping aside the stamp duty for the purchase, and maybe even a few thousand for home improvements too.


Leaving aside how sensible it is to do those things (or not), and ignoring LTV and so on, I simply want to know if I'm entitled to keep as much as I like aside from the proceeds of the sale, and put forward a reduced deposit accordingly, or if mortgage lenders frown on that kind of thing for some reason?


I'd like to think I can do what I like with the sale money, but I suspect I might be wrong! Anyone know for sure?


Many thanks,


Ben

Thrugelmir

benstaton wrote: »

Leaving aside how sensible it is to do those things (or not), and ignoring LTV and so on, I simply want to know if I'm entitled to keep as much as I like aside from the proceeds of the sale, and put forward a reduced deposit accordingly, or if mortgage lenders frown on that kind of thing for some reason?

Your money so you can do with it as you wish.

Lenders will be more interested in your past 72 months credit history and the manner in which the unsecured debt accrued. Then the likelihood of you doing this again.

So the detailed circumstances of your application will be critical as to how an underwriter views it.

benstaton

Thank you. That's good to know.


72 months eh? That's a very long time. CC's are my only debts, aside from my mortgage, and I've reduced the balances by nearly half over the last year or two, but I still owe a lot. Having said that, Experian and Equifax both have me at the excellent end of their credit scoring systems FWIW (I'm aware that these 'scores' are pretty meaningless though).


Fingers crossed the CC debt, which is certainly affordable, is just about OK with lenders.