Moving house help to buy

reapz69

Hi,

We have found our dream house! However, we are currently own a house which was bought for 150,000 in 2013 with 20%(30,000) from the Government help to buy scheme.

We have debts of around 15,000 interest-free on Credit Cards and a Loan from Tesco's of about 20,000 so roughly 35000 unsecured debt.

The payments are not a problem as our salaries have gone up recently and we have a joint income of about 70,000.
Our current mortgage has 101,000 left to pay. The house should be worth 190-200 as similar have sold for this.

Now here come the tough bit.. this dream house is 275,000 how can we achieve this;

Can we port out current help to buy over? or do we sell, pay off debts and get another help to buy (is this possible?)


Even though the debt is on interest-free this house is perfect for us and we would like to consolidate everything into one and are wondering how to achieve this, many thanks for reading.

Good credit ratings but expenditure is high as we are trying to clear the debts asap.

Brock_and_Roll

...so you have about £90k equity?


In which case you would need to borrow £185k to fund a £275k house - so no problem on the Loan to Value front at 67%.


With combined salaries of £70k, this would also be ok as borrowing 2.6 x joint income.


So it is just the existing unsecured debts that are the primary problem - have you tried using the affordability calculators?


Personally as a banker, I would be a little worried if I saw £35k of unsecured debt racked up over just 4 years without good explanation (e.g. house extension) as it might indicate living beyond means by a considerable margin.

kingstreet

Are you buying another newbuild? If you are, you can use HTB again.

When you sell, your HTB loan is paid off. If you got 20%, you will repay 20% of the property value.

Typically, lenders will 'charge you' 5% of a card balance and the monthly payment on a loan in reducing your mortgage affordability.

You need to enter your data in online lender affordability calculators (and obtain a Government HTB affordability calculator if you are buying a newbuild on HTB) to establish what is possible.

reapz69

Brock_and_Roll wrote: »

...so you have about £90k equity?


In which case you would need to borrow £185k to fund a £275k house - so no problem on the Loan to Value front at 67%.


With combined salaries of £70k, this would also be ok as borrowing 2.6 x joint income.


So it is just the existing unsecured debts that are the primary problem - have you tried using the affordability calculators?




Personally as a banker, I would be a little worried if I saw £35k of unsecured debt racked up over just 4 years without good explanation (e.g. house extension) as it might indicate living beyond means by a considerable margin.

Thanks for thew advice, government will take 20% of the house sale price