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Equity release

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I am looking to buy a new house but currently have about £22k on credit cards. If I sell my current house and pay off the existing mortgage I will be left with around £200k. Can I use some of that equity to pay off the cc? What I would like to do is free up £45k for cc payment and money to cover the costs of moving. I would then have £155k for a deposit and could apply for a £200k mortgage. One lender has said that they can't do that. Am I going to have to sell, rent, then buy again? 

Comments

  • MWT
    MWT Posts: 10,210 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Any new lender is only going to know what you are trying to borrow and how much deposit you are putting down (£155k in this case) then it is merely down to affordability.
    Was the one who objected your current lender perhaps?
  • Not my current lender, no. I've tried multiple affordability calculators and they all say I can afford more than I would like. I'm assuming the soft credit search would throw it up.
  • MWT
    MWT Posts: 10,210 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    jen9p said:
    Not my current lender, no. I've tried multiple affordability calculators and they all say I can afford more than I would like. I'm assuming the soft credit search would throw it up.
    Time to talk to a broker, they can help you navigate your way through this.

  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    The perceived view of your plan is that you are in essence consolidating the debt into a new mortgage. Lenders may be concerned that you'll continue to overspend and simply end up in an even bigger financial hole further down the line. Irresponsible lending is something lenders are going to be wary of in the current regulatory environment. . 
  • Hoenir said:
    The perceived view of your plan is that you are in essence consolidating the debt into a new mortgage. Lenders may be concerned that you'll continue to overspend and simply end up in an even bigger financial hole further down the line. Irresponsible lending is something lenders are going to be wary of in the current regulatory environment. . 
    Good advice.
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