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Debt clearing options? Plz help!
WeshG
Posts: 1 Newbie
Hi all,
Firstly let me tell you my financial situation:
From my house I am about to sell I have £27,000 equity:j
From inheritance I have £10,000
From this amount I have a
£3,000 overdraft
£19,000 loan :mad:
And £2,000 that I need to keep for my wedding.
On top of this I need £7,250 for the selling and buying process when I move. (Fees, stamp duty, agency fees)
If I was to clear all debts using the £37,000 I would have £5,750 left over, which is not enough for a 5% deposit on my next mortgage of £175,000. Meaning I will have to get a 100% one and pay a higher interest rate.
So this is my question! Should I do the above and get a 100% mortgage or should I not pay off my loan and use the money to put a 10% deposit down. Loan is over 5 years.
From how I worked it out with the two options, getting a 100% mortgage would allow us to have £200 spare each month to relax and live a little, the other option has no spare money at all for enjoyment.
What do you guys think?
Firstly let me tell you my financial situation:
From my house I am about to sell I have £27,000 equity:j
From inheritance I have £10,000
From this amount I have a
£3,000 overdraft
£19,000 loan :mad:
And £2,000 that I need to keep for my wedding.
On top of this I need £7,250 for the selling and buying process when I move. (Fees, stamp duty, agency fees)
If I was to clear all debts using the £37,000 I would have £5,750 left over, which is not enough for a 5% deposit on my next mortgage of £175,000. Meaning I will have to get a 100% one and pay a higher interest rate.
So this is my question! Should I do the above and get a 100% mortgage or should I not pay off my loan and use the money to put a 10% deposit down. Loan is over 5 years.
From how I worked it out with the two options, getting a 100% mortgage would allow us to have £200 spare each month to relax and live a little, the other option has no spare money at all for enjoyment.
What do you guys think?
0
Comments
-
Have you asked for a settlement figure for the loan? It may beless than the £19k you've quoted....
When do you get married? Can that £2k be applied to the deposit & then save that £200 a month - 12m will give you your £2k back....0
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