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Re mortgaging with debt
cjmc24
Posts: 15 Forumite
Have a question on re mortgaging with debt.
We are looking to move to another area and are about to put our house on the market. Our house value is £815,000 and we have a £330,000 mortgage, so around £485,000 equity.
We did a lot of work to our house a few years ago, and when we were finishing we ended up putting the internals on credit cards, with the intention of paying it back. Long story short it was just before covid, I went on furlough and then I found out I was pregnant, and I barely had any money coming in for about 2 years so we didn’t pay off half as much as we had hoped. Now we are in a position where we have about £45,000 debt (all in my name).
Regardless of this, we want to buy a cheaper house when we move, so about a £200k mortgage (or less), but I’m obviously concerned about the debt, actually I’m very stressed and concerned! We want to pay off the debt with the equity, but I’m worried if we (I) will even be able to get a mortgage approved with the market how it is at the moment.
other option is my partner just takes the mortgage out in his name.
has anyone been in a similar situation and could offer any advice?
We did a lot of work to our house a few years ago, and when we were finishing we ended up putting the internals on credit cards, with the intention of paying it back. Long story short it was just before covid, I went on furlough and then I found out I was pregnant, and I barely had any money coming in for about 2 years so we didn’t pay off half as much as we had hoped. Now we are in a position where we have about £45,000 debt (all in my name).
Regardless of this, we want to buy a cheaper house when we move, so about a £200k mortgage (or less), but I’m obviously concerned about the debt, actually I’m very stressed and concerned! We want to pay off the debt with the equity, but I’m worried if we (I) will even be able to get a mortgage approved with the market how it is at the moment.
other option is my partner just takes the mortgage out in his name.
has anyone been in a similar situation and could offer any advice?
0
Comments
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Why would you need a mortage if you have 400k equity?Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £56099
Cc around £32000 -
Because the OP wants a £600k house?Sncjw said:Why would you need a mortage if you have 400k equity?4 -
Yep, we’d like a £600,000 house0
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FWIW, I think the affordability for you would be fine. You're reducing the debt, so monthly payments shouldn't be a problem.
Lenders can make it a condition of the mortgage that you agree to pay off the debt within X days of completion if they're particularly worried.0 -
OP are you now back to work? Even if you are getting a cheaper house even with/without debt it will boil down to the stress test. It is all about earnings and outgoings or is it not? A lender will not lend to you say you are no longer working or earning much less just because you are now getting a mortgage with lower monthly outgoings!Initial mortgage bal £487.5k, current £258k, target £243,750(halfway!)
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),Target is to pay it off in 10years(by 2030🥳).MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
Am a single mom of 4.Do not wait to buy a property, Buy a property and wait. 🤓0
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