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Will banks take into account that I'm clearing debts on sale...??
Pennypanj
Posts: 22 Forumite
Hi,
I am a homeowner (with mortgage) and want to move house next year. I have around £50,00 equity in my current house, and outstanding debt of £15,000. I will be clearing my debt with the equity once I sell the house and will use the remainder as a deposit on the new home.
My question is...will mortgage lenders take into account that my debts will be cleared on sale of the house, when calculating how much they'll lend, or will they calculate how much they will lend based on current situation (i.e with £15,000 worth of debt- which obviously impacts majorly on what they'll lend me)??
Many thanks!
I am a homeowner (with mortgage) and want to move house next year. I have around £50,00 equity in my current house, and outstanding debt of £15,000. I will be clearing my debt with the equity once I sell the house and will use the remainder as a deposit on the new home.
My question is...will mortgage lenders take into account that my debts will be cleared on sale of the house, when calculating how much they'll lend, or will they calculate how much they will lend based on current situation (i.e with £15,000 worth of debt- which obviously impacts majorly on what they'll lend me)??
Many thanks!
0
Comments
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Some will.
Some won't.
Consult an independent broker for guidance on lender selection. For a lot more than debt repayment.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 think the majority do but there are a couple who will not. So you need to either check before applying or consult a broker.I am a Mortgage AdviserYou 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
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