Help to buy - Mortgage with some debt consolidation

Lollipop808

Hi - we have spoken with a broker and are planning to take a help to buy mortgage to buy our new home.

We have some credit card debt, but are planning to pay this off as part of the move, so that we can reduce our outgoings.

I found this on the Halifax for intermediaries website, on the help to buy section and am a bit worried:

"We do not allow any remortgage applications, where there is any element of debt consolidation."

Does this mean that we won't be able to pay off our credit card as we move? Or does this just apply to remortgaging an existing help to buy mortgage?

Thank you.

fairyloveheart

I've just had a look but can't find where it says it?

Lollipop808

I am struggling to find it again now, but it was definitely there! However it was in a section that put "help to buy" with "shared equity" and I think (I hope) it was actually referring to remortgaging and looking for more money, where this is ok for repaying the equity loan but not for other debt consolidation.

I think I need to stop looking at things on line and just wait to hear back from our mortgage broker!

kingstreet

You don't do debt consolidation as part of a purchase.

You pay off the debt by reducing your deposit.

Lollipop808

Thank you Kingstreet. I think I am confusing myself by reading things I don't really understand.

So they are referring to a remortgage, i.e. you live there already and are looking to take equity out, whereas we will be moving and paying off credit card with the proceeds.

fairyloveheart

I think I read that the other day and that was for the shared equity part own part buy bit where you pay rent on the other half?

I am like you, keep reading everything I can find and I don't know why, as isn't going to change anything!

I would have thought your broker would have told you if there were any problems xx

kingstreet

Yep. Exactly.

Using your money for the debt consolidation, not mortgage money.

Lollipop808

Thanks so much.

I think I should just wait now to hear the decision and stop second guessing and winding myself up. The broker seems to think we will be fine, but it's still a worry.

Many thanks again.