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Moving home with equity and debt

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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!!!!!

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Have you considered the option of buying a lower priced property. This at least gives you the opportunity of getting yourselves financially straight.
  • new_owner
    new_owner Posts: 238 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    You could always sell move into rented clear the debt and take some time finding the right property?
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,052 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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.
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