Mortgage Affordability vs debts

Timme72

Hi,

We are currently in the process of selling our house and will be using some of the equity to clear some debts. We wanted to buy another house but are concerned that our debts will be held against us when a potential lender does their affordability checks.

Can anyone confirm whether lenders are prepared to look past these debts, say for example if they made it a condition that they were cleared upon completion?

With our current debts some mortgage calculators say we could potentially borrow £130k, yet without the debts about £200k. We'll have enough equity from our sale to clear the debts and have a 10% deposit, after stamp duty etc., on a £220k house.

Any help would be greatly appreciated as we don't know whether we should be looking to rent upon completion of our sale so we can clear the debt, or if we would be considered with a conditional offer, if there is such a thing?:beer:

kingstreet

Some do, some don't, so careful lender selection will be key.

toc25

I'm doing the same thing, Natwest were fine with it. She put through all the figures minus the debt we were clearing for the AIP.