Moving home, bigger mortgage and paying off debt

mrsc21

Hello

Advice appreciated! My oh and I are looking to move. Our current home worth approx £125k and we are looking at property around £165k. We have a joint annual income of £40k. This doesn't include my oh overtime which is approx £10k a year. Our existing mortgage is approx £76k remaining.

Our problem is £23k of credit card debt. How likely is it we can move use some money to pay off the debt and the remainder to use as deposit on the next property?

Financially we know we could afford the monthly payments even with a substantial rate rise. However I'm not sure a lender would see it the same? We would be looking at around 90 ltv.

TIA

Thrugelmir

mrsc21 wrote: »

Financially we know we could afford the monthly payments even with a substantial rate rise. However I'm not sure a lender would see it the same?

A lender is going to have the concern that you are going to simply run up yet more unsecured debt. You've £50k of annual income with a relatively small mortgage. Running up a debt of that levels suggests a lack of control over your personal finances.

mrsc21

It was mainly sue to me being on minimal hours. That has changed approx 18 mths ago when I got a new job. We are now just paying it off.

Is it a deal breaker though? We have never defaulted on any payments BTW

Thrugelmir

There's a lender in the market for almost all circumstances. Though the caveat is what they'll offer in terms of product. Suggest you contact a broker to guide you. Making inroads into the debt will do you no harm at all. As you never know when financial misfortune may strike again.