Hi All, I’m after a little advice if possible, we were caught up in the Northern Rock mortgage crisis back in 2008 and our mortgage has since been moved to Helidor Mortgages on a crazy rate. We’re still on an interest only mortgage, we were stuck in negative equity, but with the increase in house prices in the area we have around 20% in equity. I want to move us to a better mortgage as I’m now earning more money and our credit score is much better so that should strengthen our application. The issue is we’ve been through a tough time (we’re out of it now) in which we’ve ended up with a considerable amount of unsecured debt. I’ve got around £12k that we’ve saved and my question is, will it strengthen our mortgage application if we use the money to clear some of our unsecured debt (loan and a couple of credit cards) or pay it towards the mortgage?
Apologies for the long and probably confusing question! Any help would be greatly appreciated as I feel quite embarrassed speaking to a broker and admitting the mess we got into, but I’m determined to get us out of.
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