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New Mortgage with debt question
flashbang
Posts: 21 Forumite
Just wondering if anyone can advise on the scenario below. We currently own a house valued by two agents at £210,000. We would like to sell and would hope to achieve £200k. We have seen another house which is in a bad state of repair but has great potential. We may be able to purchase for around£130k.
On paper at the moment we are a lenders nightmare. Around £20k debts and my wife isn't working after having two young kids. I have a decent salary just short of £40k but when I put this salary, debts and dependants into mortgage calculators they will only lend less than £90k, some indicate they wont lend anything at all. This doesn't surprise me too much. Because of the difference in house values we should stand to have around £60k left which I would like to use to clear the debt and start new house refurb.
When I put the same circumstances into the mortgage calculators without the debts they indicate lending of upto £165k when we would only need £117k at most. Would a lender be willing to provide the required amount if they know the full circumstances and intention to pay off the debt?
On paper at the moment we are a lenders nightmare. Around £20k debts and my wife isn't working after having two young kids. I have a decent salary just short of £40k but when I put this salary, debts and dependants into mortgage calculators they will only lend less than £90k, some indicate they wont lend anything at all. This doesn't surprise me too much. Because of the difference in house values we should stand to have around £60k left which I would like to use to clear the debt and start new house refurb.
When I put the same circumstances into the mortgage calculators without the debts they indicate lending of upto £165k when we would only need £117k at most. Would a lender be willing to provide the required amount if they know the full circumstances and intention to pay off the debt?
0
Comments
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Is the current property mortgage free?0
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No, about £140k outstanding on current mortgage0
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Broker,
you need someone to look at how best to present your finances.0
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