We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Equity release
Options

jen9p
Posts: 4 Newbie

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?
0
Comments
-
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?0
-
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.0
-
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. .0
-
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. .0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards