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Affordability, existing unsecured debt
AndrewKent82
Posts: 10 Forumite
Hi there,
What is the situation when it comes to existing unsecured debt when applying for a mortgage?
I know it's factored into the affordability calculations, but are there any ways of excluding certain commitments? I ask as I have 2 loans, one with <6 months to run, and another with 14 months to run. I could pay these off using the equity generated from sale of existing house, bit that obviously eats into my deposit. Also, I have a 0% credit card which will be paid off in around 9 months with existing payment. Is there any option to exclude this?
Cheers
Andrew
What is the situation when it comes to existing unsecured debt when applying for a mortgage?
I know it's factored into the affordability calculations, but are there any ways of excluding certain commitments? I ask as I have 2 loans, one with <6 months to run, and another with 14 months to run. I could pay these off using the equity generated from sale of existing house, bit that obviously eats into my deposit. Also, I have a 0% credit card which will be paid off in around 9 months with existing payment. Is there any option to exclude this?
Cheers
Andrew
0
Comments
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The answers to these questions depend on the Lender.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 -
Thanks, I figured different lenders would take different stances.. butbi wondered whether there were any general principles that are adopted or if anyone of knowledge had any working experience of such practices.
Andrew0 -
There are lenders who will ignore if less than 6 months left to run. 14 months is probably a little too long to be ignored.
There may be some who ignore if less than 12 months, but I can not think of any off the top of my head.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, 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
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