Help...no way out? Jambat1

#1
Hi guys newbie here, please could someone offer any advice on the following ?

So we have been in our current house about 2 years and previous to this house we were in the other house for another 2 years. Basically we moved as loyal mover customer although the mortgage company said that the mortgage was not affordable?! Im sure we will run into the same this time but we would be so much better off if the below plan would be excepted



Anyway basically we have made about 55k on the sale of this house.

However we also have a about 20k we owe family and 25k on credit cards we have used for renovations and basically bumping my wife's salary as she is part time due to child care costs.





What we want to do is buy a cheaper house, pay off all the credit cards and family and reduce the mortgage. Once this is done we would have about 150k equity/deposit and would look at borrowing 100k as supposed to 0ur £150k so LTV would be good?



This is a perfect scenario for us but im worried the mortgage company won't take paying of the debt into account on completion . We have no way of paying it off before applying or porting the mortgage.

But on completion we would be debt free with a smaller mortgage?!



The mortgage and cost of living is not a problem we have never missed payment but the credit cards are crippling us day by day. With this down size we out of the woods but I can't see any other way without the above plan

#2
See a broker, but it would seem easily done (as long as you qualify for a £100k mortgage) if you ;

- Sell, presumably releasing £200k after mortgage is paid off,

- Pay off your other debts leaving £150k

Go into rented

- Buy at £250k with a £100k mortgage



But I'd have thought, subject to affordability, you could do this in one go.

#3
Hi Jambat, I know a lot of mortgage providers (Halifax included) do understand that there and sometimes debts which you plan to repay on completion with the mortgage funds which needs to be taken into account but cannot be repaid before you have the equity to do so. What they will usually do is write on the mortgage offer that XYZ credit cards/loans etc. must be repaid within 3 months of completion for the mortgage offer to be valid, the onus is then on the solicitor to ensure said accounts are repaid.

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