Too much debt for a mortgage?

Hillwalker1975

Hi, need some advice please.

currently got a £120k mortgage, house probably worth £190,000 on the market and I’d like to sell.

ideally, would need a £300k mortgage next.

I earn £60k, missus earns £26k

i have a loan of £20k and c/cards about £7k

missus has no debt. I’m 48 she’s 43.

we have 2 kids and steady jobs.

ideally, I want to be able to sell the house, clear the mortgage and £27k debts and use rest as a deposit.

am I likely to be able to do that, or would the loans/c/cards be an obstacle?

worried I might just get refused or only offered daft rates.

any advice welcomed.

thanks

ACG

You should be fine, it might not be for every lender but you should have most of the market available to you. 

Hillwalker1975

ACG said:

You should be fine, it might not be for every lender but you should have most of the market available to you. 

Who would I be best to approach? I feel I’d like to speak to someone and be up front, but I’ve never used advisors or brokers before. Don’t want my pants pulled down ☹️

thanks for replying 👍

Dobbie1999

Hillwalker1975 said:

Who would I be best to approach? I feel I’d like to speak to someone and be up front, but I’ve never used advisors or brokers before. Don’t want my pants pulled down ☹️

thanks for replying 👍

100% speak to a mortgage broker. I've never paid for any services from my broker and they've always made the process so simple.

Others may provide far superior experience, but to my knowledge, some brokers will charge a fee but there are many who don't, and they simply take commission from the lender for 'brokering' a mortgage product with them on your behalf.

Hillwalker1975

Dobbie1999 said:

Hillwalker1975 said:

Who would I be best to approach? I feel I’d like to speak to someone and be up front, but I’ve never used advisors or brokers before. Don’t want my pants pulled down ☹️

thanks for replying 👍

100% speak to a mortgage broker. I've never paid for any services from my broker and they've always made the process so simple.

Others may provide far superior experience, but to my knowledge, some brokers will charge a fee but there are many who don't, and they simply take commission from the lender for 'brokering' a mortgage product with them on your behalf.

Cheers.

to be honest, that’s the plan but I don’t want to waste anyone’s time, so was going to see if people on here with experience or in similar circumstances had been successful or not.

appreciate the response 👍

ACG

It would either be the lenders directly or via a broker. 

Generally speaking most of the brokers I know are pretty decent people. I know the reputation in financial services is not the best but it has improved a lot in the last decade or so. Im sure you will be fine, the general rule of thumb is that ti is best to avoid the agents part of the large corporate estate agents. 

Hillwalker1975

ACG said:

It would either be the lenders directly or via a broker. 

Generally speaking most of the brokers I know are pretty decent people. I know the reputation in financial services is not the best but it has improved a lot in the last decade or so. Im sure you will be fine, the general rule of thumb is that ti is best to avoid the agents part of the large corporate estate agents. 

Thanks

would a lender be happy with me wanting to clear £27k debts from the sale of the house? I’d expect so, but just don’t have a clue!

Emmia

Once you sell your current house, where are you going to live, until you buy your next one?

Hillwalker1975

Emmia said:

Once you sell your current house, where are you going to live, until you buy your next one?

Planning to buy at the same time and move

ACG

Hillwalker1975 said:

ACG said:

It would either be the lenders directly or via a broker. 

Generally speaking most of the brokers I know are pretty decent people. I know the reputation in financial services is not the best but it has improved a lot in the last decade or so. Im sure you will be fine, the general rule of thumb is that ti is best to avoid the agents part of the large corporate estate agents. 

Thanks

would a lender be happy with me wanting to clear £27k debts from the sale of the house? I’d expect so, but just don’t have a clue!

Yes. 
I have one that got offered yesterday (it actually got declined the day before - but that was down to a lazy underwriter, nothing a bit of kicking off could not fix), the clients were in a similar position. Slightly lower incomes, slightly less debt and cheaper purchase price but the principle is the same. 

Most mortgage lenders will ignore debt that is being cleared - there are I think 3 big lenders who do not do that. But most just make it a condition of the new mortgage that those debts are cleared and then leave it to you or the solicitor to ensure that happens. 

Dont worry. You are definitely not the first to do this and you wont be the last. You will be fine. 

Wes121708

We're planning on doing this and spoke with my current lender and said on condition there was an agreement on completion that we would use surplus to clear our debts they were fine and the amount we could borrow went substantial up.