Moving house with debt

[crabette]

I have a house mortgaged in my name only. Outstanding mortgage balance £84k, and I think the current sale price would be about £130-135k so about £45-50k equity.

Looking to sell this and buy a property with partner, for about £270-280k.

However, I have about £15k in credit card debt. which I'm not sure how to handle.

I'm keen to move house soon as our house is too small for our expanding family! - however appreciate it may not be the best time of year, and I'm also due to go on maternity leave in April. Because of this, keen to at least consolidate the £15k in the short term, without affecting ability to move either in the immediate term or later next year.

Do I:

1. Remortgage existing property to add the £15k into existing mortgage. This converts unsecured to secured which makes me a bit nervous, but monthly payments will go down to next to nothing.

1. Take out a loan for the £15k to consolidate, still unsecured, with a view that this needs paid off prior to moving but is at least more manageable meantime.

1. Just bite the bullet and move asap, use the equity to cover the debts in the process without any extra consolidation, and get new house before baba arrives if at all possible?

Depends on your take home.
Unsecured debts don't stop you from getting a mortgage - although could impact your rates.

Would speak to a broker and see what they say.

Joint take home circa £80k.

Think speaking to a broker is a good plan, just feel sometimes a bit nervous that they're trying to sell you a plan!

Sorry, that's obviously annual and pre-tax! So not entirely accurate as 'take home'.

When I brought my house a few years back any debts impacted how much you could borrow so you should factor this in if you want to borrow to your max allowable.
Again speaking with a broker would tell you how it will impact your borrowing capacity. I am not sure if remortgaging now could also impact your credit rating?

Brokers are different to advisors.

Brokers have to be independent. You can speak to the Mortgage Advice Bureau who are free and independent.

They are there to tell you want you can get, and help you get the best deal for your situation if you choose to go with them.

Shouldn't have really asked take home to be honest!

I don't think you will have too much issue with £15k debt against that salary.

It will impact what you can borrow, but you'll be able to borrow without clearing the debt. Just let the broker know the 'ugly' truth!

You need to ask yourself if you really are in a position to take on a more expensive property and mortgage whilst having this £15k debt. Your mortgage payments are going to increase plus all your moving costs etc.

I wouldn't turn this debt into being secured against your home. Debt consolidation rarely works.

Option 3 sounds like the best option to me.