We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Applying for a Mortgage with Debt
Hanger_boy89
Posts: 118 Forumite
Can somebody help please? I own a home outright with no mortgage on it, but I also have a bit of debt in the form of a loan that I took out for essential medical surgery, and a couple of small credit cards. I wanted to sell my property, use some money from the sale to pay these debts off and then apply for a mortgage. How would this work in terms of my credit score, because I want this to go up before applying for a mortgage too?
I really don't want to apply for a mortgage with this debt, so I would rather wipe them completely first with the sale of my property and then apply for one. Any advice would be greatly appreciated!
I really don't want to apply for a mortgage with this debt, so I would rather wipe them completely first with the sale of my property and then apply for one. Any advice would be greatly appreciated!
0
Comments
-
You are worrying about a problem that does not exist.
Lenders see loans repaid on sale and purchase very day.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Sorry I'm not sure I understand your response?0
-
Hanger_boy89 wrote: »Sorry I'm not sure I understand your response?
amnblog is saying it is not a problem, if you tell a lender you are paying off a debt before completion then they will account (most lenders) for that and not decline you specifically for having a debt outstanding.
If you were to wait for credit agencies to update this could take up to 3 months.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Ok so if I was to apply for a mortgage with £15,000 of debt behind me, but explain that I was going to use some of the property sale to write this off and still have £200,000 deposit towards a new place, then this would usually be okay?0
-
Yes.Hanger_boy89 wrote: »Ok so if I was to apply for a mortgage with £15,000 of debt behind me, but explain that I was going to use some of the property sale to write this off and still have £200,000 deposit towards a new place, then this would usually be okay?
Absolutely. (Daft 10 character minimum)I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I appreciate the response, thank you!0
-
Of course if anybody else would like to throw in their two cents then please do!0
-
With no mortgage. Why aren't you managing to repay your debts from income?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards