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Moving home with equity and debt
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TB411
Posts: 1 Newbie
Hi all, due to issues with harrassment by our neighbours, we need to move and move quickly.
We currently have a mortgage which is sitting at approx £91K and the house is worth approx £155-£160 (another neighbour with same house recently moved and got this). This means we have at the least £65K in equity. Unfortunately, we also have about £20k in car loans and credit cards *sigh*. My husband earns £19K a year plus overtime of about £3k and I earn £8200 plus £6K secured income from my ex husband.
According to the online cals unless we pay off the debt, we'd struggle to get a mortgage. So my questions is - can we get a new mortgage with £40K deposit and pay off debts with the rest?
Anyone been in a similar position and come out of it OK?
Many thanks for help in advance!!!!!
We currently have a mortgage which is sitting at approx £91K and the house is worth approx £155-£160 (another neighbour with same house recently moved and got this). This means we have at the least £65K in equity. Unfortunately, we also have about £20k in car loans and credit cards *sigh*. My husband earns £19K a year plus overtime of about £3k and I earn £8200 plus £6K secured income from my ex husband.
According to the online cals unless we pay off the debt, we'd struggle to get a mortgage. So my questions is - can we get a new mortgage with £40K deposit and pay off debts with the rest?
Anyone been in a similar position and come out of it OK?
Many thanks for help in advance!!!!!
0
Comments
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Have you considered the option of buying a lower priced property. This at least gives you the opportunity of getting yourselves financially straight.0
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You could always sell move into rented clear the debt and take some time finding the right property?0
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There is no reason why you couldn't do that.
Your best bet is to see a mortgage broker.
If you buy a house in roughly the same price bracket though this would mean a bigger mortgage. As you have built up debt on a £91k mortgage what is going to stop you building up debt again when you have a bigger mortgage payment.
I am not sure many lenders will take your £6k maintenance into account when considering income multiples.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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