1st time buyer Mortgage question

lea

Hiya

Please help!!
A bit of background first:My partner and I have approx £20k of unsecured debt between us, the repayments about £600 per month. I earn £13,300 basic, he earns £15,600 basic but we both earn commission on top.

We are in the very fortunate position that a relative of my partners wants to give us £150k that they have in some sort of investment policy (to avoid tax I think) but it is only to be used to underwrite a mortgage, not to pay off any debts.

My question is-if we are able to get a mortgage to make up the difference of the cost of the house, can we use some of the money from the mortgage lender to pay off debts or does it have to be used to pay for the house??

We are thinking of getting a house worth approx £200k, so if we were able to boorow £70k, could £20k be used to pay off debt and the rest on the house??

I hope this makes sense!!

Lea

lea

Hi, I am going to try posting this on one of the other boards.

Thanks
Lea

polarbearit

I don't see why not - lots of people get more mortgage than they need and use the cash for other things...

On the other hand I don't see what the difference between - £70k mortgage and £130k cash and £20k paying of debts is to £50+20k mortgage £150k cash!

lea

Thanks for your reply

I think it would make much more sense to use some of the 150k to pay off the debt but the relative has point blank refused and said she's not 'bailing us out'. So the condition of the money is for it to be used only on buying a house!

Thanks
Lea