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Using gift deposit to clear debt first
Summer12
Posts: 108 Forumite
Hi
We have just received a very kind gift deposit from a relative. We were going to clear all existing debt using the sale proceeds of our current house (due to exchange very shortly) before applying for new mortgage to put us in the best possible position of being accepted. But now the gift money is in my account I'm wondering about using this now to clear debt so that credit file updates quicker. Then use more of our house sale proceeds to replace this. Does anyone see a problem with this? To me it seems to be most sensible answer but don't want to confuse things with regards paper trail of gift deposit. Thank you for your thoughts.
We have just received a very kind gift deposit from a relative. We were going to clear all existing debt using the sale proceeds of our current house (due to exchange very shortly) before applying for new mortgage to put us in the best possible position of being accepted. But now the gift money is in my account I'm wondering about using this now to clear debt so that credit file updates quicker. Then use more of our house sale proceeds to replace this. Does anyone see a problem with this? To me it seems to be most sensible answer but don't want to confuse things with regards paper trail of gift deposit. Thank you for your thoughts.
0
Comments
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Are you intending to move into a rented property for a while?0
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Yes we are.0
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if you use the money to clear debt it is no longer deposit money.0
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We wouldn't be using the total amount so some would be left.0
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Clear the debt. Time heals. The sooner the better. With no debt it should be possible to replenish you savings.0
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