Mortgage with high debts

CNB123

Hello not an ideal situation but a bit of back story. We moved with 3 children in to a house that needed A LOT of work to make it habitable. In doing the works we have racked up around 65k debt between loans and credit cards. We have a decent wage between us of around £110k per annum so are managing with the debt although not ideal. 
We have made good money on the house in doing renovations and have around £250k equity. We would like to move due to space and around 100k more than our current property value. 
We would like to sell the house, pay off the current mortgage (about £198k) and then pay off the debt with the equity, put down a £110k deposit on the next house and have maybe 40k left for renovation of the next property. 
However due to our debt to income ratio we do not look favourable to lenders and were declined around 16 months ago. All lenders saying the debt is the issue and we are at our max lending as such. 
Is there any lenders or brokers who would be able to assist with his given that we would be totally debt free moving forward as have plenty of money to pay off the debt in the equity? The new mortgage would actually be around £600 less than we pay for our current mortgage and debts combined. 
We do have a plan of action to pay the debt down considerably in the next 18 months but with the children growing up we would rather action the move sooner if we could

annetheman

CNB123 said:

Hello not an ideal situation but a bit of back story. We moved with 3 children in to a house that needed A LOT of work to make it habitable. In doing the works we have racked up around 65k debt between loans and credit cards. We have a decent wage between us of around £110k per annum so are managing with the debt although not ideal. 
We have made good money on the house in doing renovations and have around £250k equity. We would like to move due to space and around 100k more than our current property value. 
We would like to sell the house, pay off the current mortgage (about £198k) and then pay off the debt with the equity, put down a £110k deposit on the next house and have maybe 40k left for renovation of the next property. 
However due to our debt to income ratio we do not look favourable to lenders and were declined around 16 months ago. All lenders saying the debt is the issue and we are at our max lending as such. 
Is there any lenders or brokers who would be able to assist with his given that we would be totally debt free moving forward as have plenty of money to pay off the debt in the equity? The new mortgage would actually be around £600 less than we pay for our current mortgage and debts combined. 
We do have a plan of action to pay the debt down considerably in the next 18 months but with the children growing up we would rather action the move sooner if we could

I don't know if a mod can move the thread, but if not, I would repost this in the Mortgages & Endowments subforum - lots of helpful Mortgage Advisors and former/current brokers active on there.

I'm also currently applying with what I think is high debt (see signature) and similar income, however I have had a mortgage offer no problem. Got it in 3 days in fact, from application through a rather brilliant broker.

My advice would be to use a broker but for more specific advice on how your debt will impact your applications (which it shouldn't, I think, if you are applying and declaring the debts and also that they will be £0 at the time of taking the loan), definitely there are experts in the Mortgage forum who will be very helpful.

lika_86

CNB123 said:

Hello not an ideal situation but a bit of back story. We moved with 3 children in to a house that needed A LOT of work to make it habitable. In doing the works we have racked up around 65k debt between loans and credit cards. We have a decent wage between us of around £110k per annum so are managing with the debt although not ideal. 
We have made good money on the house in doing renovations and have around £250k equity. We would like to move due to space and around 100k more than our current property value. 
We would like to sell the house, pay off the current mortgage (about £198k) and then pay off the debt with the equity, put down a £110k deposit on the next house and have maybe 40k left for renovation of the next property. 
However due to our debt to income ratio we do not look favourable to lenders and were declined around 16 months ago. All lenders saying the debt is the issue and we are at our max lending as such. 
Is there any lenders or brokers who would be able to assist with his given that we would be totally debt free moving forward as have plenty of money to pay off the debt in the equity? The new mortgage would actually be around £600 less than we pay for our current mortgage and debts combined. 
We do have a plan of action to pay the debt down considerably in the next 18 months but with the children growing up we would rather action the move sooner if we could

Couldn't you sell your house, move into rented, pay off the debt and then look to move? Then you'd have no debt, a healthy deposit and you'd be chain free so attractive to sellers.

CNB123

lika_86 said:

CNB123 said:

Hello not an ideal situation but a bit of back story. We moved with 3 children in to a house that needed A LOT of work to make it habitable. In doing the works we have racked up around 65k debt between loans and credit cards. We have a decent wage between us of around £110k per annum so are managing with the debt although not ideal. 
We have made good money on the house in doing renovations and have around £250k equity. We would like to move due to space and around 100k more than our current property value. 
We would like to sell the house, pay off the current mortgage (about £198k) and then pay off the debt with the equity, put down a £110k deposit on the next house and have maybe 40k left for renovation of the next property. 
However due to our debt to income ratio we do not look favourable to lenders and were declined around 16 months ago. All lenders saying the debt is the issue and we are at our max lending as such. 
Is there any lenders or brokers who would be able to assist with his given that we would be totally debt free moving forward as have plenty of money to pay off the debt in the equity? The new mortgage would actually be around £600 less than we pay for our current mortgage and debts combined. 
We do have a plan of action to pay the debt down considerably in the next 18 months but with the children growing up we would rather action the move sooner if we could

Couldn't you sell your house, move into rented, pay off the debt and then look to move? Then you'd have no debt, a healthy deposit and you'd be chain free so attractive to sellers.

We have thought about this but there's hardly any family homes to rent in Bournemouth and we have pets so an adding concern! I also get worried about the what ifs, like the economy changed and we ended up only be able to afford what we already had house wise... maybe I'm overly flapping in that respect but the past year or 2 has made me concerned! 

FlyMeSomewhere79

Have you had the house valued and put on the market yet? Ay least then you can gauge a more definite value and what people are prepared to offer for it.

I think you need to see what you get for the house and try and find temporary accommodation somewhere so you can work all the finances and see what a mortgage lender can do for you. At least then you would be debt free and hopefully a lot more lendable. 

We used L&C and find the mortgage brokers to be really good and helpful there so might be worth getting in touch with them for some advice.

Wes121708

We contacted our current lender and wish to move but use our equity to clear down our debt they have said that we could agree this as part of the agreement we clear it on completion and said it wouldn't be an issue.