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Using equityng to clear debt when moving
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rich81
Posts: 15 Forumite
Hi
If I have a house worth 180k with 100k equity but also 20k unsecured debt, could I sell my house, put 80K deposit towards the next house and keep 20k to clear debts? Would a mortgage lender accept this or would they insist the 20k in affordability calculations, even though it will be cleared before the new mortgage starts?
If I have a house worth 180k with 100k equity but also 20k unsecured debt, could I sell my house, put 80K deposit towards the next house and keep 20k to clear debts? Would a mortgage lender accept this or would they insist the 20k in affordability calculations, even though it will be cleared before the new mortgage starts?
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Comments
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It depends on the lender, it could also be a term of the mortgage offer that you repay that debt and provide evidence that you have done so."You've been reading SOS when it's just your clock reading 5:05 "0
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As long as you can get a mortgage with the £80,000 deposit then is no reason why you cannot use the £20,000 to clear your current debts, you have enough for other costs and fees?0
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A couple of lenders include in affordability debt which will be repaid on completion. These should be avoided.
Get broker help in lender selection.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
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