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Paying off debts using equity on exchange
neneromanova
Posts: 3,051 Forumite
I'm a little confused on how I can do this.
We're currently £33k in debt (slowly coming down and being transferred around to 0%cards). We are wanting to move this year and, if we sell for what we hope we can we'll have £100k equity for the debts and new house. But obviously we can't get a mortgage if we have these debts. Is there anyway that we can get a mortgage on the proviso that the debts get paid off using the equity on completion of the house sale?
This will be our 1st time selling and buying, and we were FTB 7 years ago with no debts so I have no idea on this kind of thing.
Thanks
We're currently £33k in debt (slowly coming down and being transferred around to 0%cards). We are wanting to move this year and, if we sell for what we hope we can we'll have £100k equity for the debts and new house. But obviously we can't get a mortgage if we have these debts. Is there anyway that we can get a mortgage on the proviso that the debts get paid off using the equity on completion of the house sale?
This will be our 1st time selling and buying, and we were FTB 7 years ago with no debts so I have no idea on this kind of thing.
Thanks
What's yours is mine and what's mine is mine..
0
Comments
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Yes you can, but heavy current unsecured debts will preclude some lenders offering to you.
Worth consulting a broker for this one.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
The bigger issue is you have been funding the current mortgage with debt.
Unless that has been fixed can you afford to move.0 -
No we're all good money wise, it was just for a new kitchen, new guitars, new effect pedals etc. Just spending above our means. We've gotten a lot better at not spending now, just want to start a fresh with no debts, leaving us with £1500 left over after every bill has gone out.
EDIT: We've been paying off cards monthly, but with £400 interest a month and no one letting us get a 0% until now, we haven't really been able to make a dent in anything til now.What's yours is mine and what's mine is mine..0 -
neneromanova wrote: »No we're all good money wise, it was just for a new kitchen, new guitars, new effect pedals etc. Just spending above our means. We've gotten a lot better at not spending now, just want to start a fresh with no debts, leaving us with £1500 left over after every bill has gone out.
Lenders might require some convincing that this is the case. There'll have visibility on the fact that you've been juggling round % cards. The Debt Free Wannabe forum is a good place for support and advice as to how to tackle the issue. The more you can do for yourselves the easier it will be for you to achieve your dream.0
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