Mortgage question if anyone can help me please!

[DitzyPrints]

We have 18k debts we are hoping to move in autumn.
We have £70 equity in house and need around 50k for mortgage could we use the equity from house sale to pay off debts and will lenders acknowledge this when calculating how much we can borrow?
With the debt and higher deposit comes out £195k
With debt paid and lower deposit we can borrow over 250k
Thanks

£70k not £70!
We have moving costs covered by btw I meant to add thanks

Also debt was accrued while I was sahm but now I’m working and Dh has had significant pay increase so unlikely to get into debt like that in future (touch wood!)
Payments have been up to dare

Well, yes you can use whatever you make from the house sale to repay your debts - it's your money. If the mortgage co will lend (in principle) £195k when you only need £50k to purchase a new house, then it's all moot isn't it.

Or do you mean can you apply for more mortgage than you need (i.e. apply for £68k mortgage and use £18 k to pay off debts?) If so, two considerations:

1. You'll be moving the debt from (presumably) unsecured to secure.
2. What are the comparative interest rates like?

I doubt it, although you could try a broker (I'm not an expert).

You can't repay the debt until you sell the house and you'd be applying for a new mortgage before you'd paid off the debt.

Is this because your current debt repayments/ monthly comitments are high so your available money for monthly mortgage payments is lower?

Paying off the debt from the mortgage is not an issue but I can't see how you can remove your current comitments from your mortgage application for when you move.

Have you looked at debt consolidation options, longer term repayment options to reduce the monthly payments to up your mortgage available amount?

But as someone who borrowed for her first mortgage when interest rates we're double figures I'd always urge caution overborrowing. Seeing people homeless when they couldn't keep up repayments is horrible.

Yes you can. I've just got a mortgage on the basis that I pay off the debt within 30 days of completion.

Some lenders will consider that the debt will be paid and make it a condition of the mortgage - I think if you then don't clear it down within a certain length of time they can rescind the offer even after drawdown. A mortgage broker will know the best options for you though as they may well find you one that will lend you the £250k without clearing down the debt anyway.

Ah ok some will some won’t by the looks of it! Probably by the time if moving it will paid down to 15k but would still rather clear it on moving iyswim! Thanks all 👍

If you go to an independent financial adviser/mortgage broker they can sort it out for you. We did this in the past after I'd been a SAHM. We also held back some of the equity to make sure it never happened again iyswim.

The answer is yes and yes.

We have literally just done this 2 week's ago

We're paying off 25k in debts when we move! And Halifax would lend us more by doing so as our monthly outgoings reduce from £900 to £0 per month, therefore we have higher affordability without all the outgoings