Selling house ..new mortgage advice ?

sibod2002

Hi guys

I am selling my current property and am looking to buy another property and the possibility of maybe moving now my current mortgage to a new property for around the same amount .

I am currently with Halifax for the last 6 years and have never missed a payment . However at this moment in time I have some credit card debt which i am paying off on time and plan to clear when the sale of my house goes through. Now when applying for a new mortgage will lenders refuse me due to this credit card debt or can I tell them that all debt will be cleared once the sale is completed . Will they accept that statement or will they turn me down due to what they think is affordability ?

Thanks any advice would be appreciated

AnotherJoe

Impossible to even hazard a guess without knowing all the financial details.

kingstreet

For most lenders, credit being repaid on or before completion is ignored for affordability. Avoid Santander though.

You can't move a mortgage from one property to another. You are applying for a new mortgage with your current lender or with a different one. If you have a rate/terms you wish to port to a new mortgage with the same lender, you may be able to do this but you have to qualify for the new mortgage like any other borrower.

sibod2002

Ok thanks for advice if I have about 10k on a credit card which I have made repayments on time ..if I clear the debt on completion then want to buy a new house would I need to wait until my credit report has been updated ?

Bravestar

sibod2002 wrote: »

Ok thanks for advice if I have about 10k on a credit card which I have made repayments on time ..if I clear the debt on completion then want to buy a new house would I need to wait until my credit report has been updated ?

Other debts (that are being correctly serviced, paid on time, etc) will not directly, adversely affect a mortgage application.

All it may do is affect the amount you can borrow (as you have already borrowed some)

If you can pay off the credit card, do it (unless it's a good promotional rate) - credit card interest is typically about 20% p.a :eek:

If you do pay it off, you can always provide proof (if necessary) to a lender it has been fully repaid - you don't need to wait for your credit file to be updated.

What lenders hate is undisclosed, nasty surprises when they go to check things out. So let the lender be fully aware of things before they start to look ... and then when they see something that would otherwise not look so good, they will already be aware of what it relates to and how it is or has been dealt with