Please talk sense to me about this!

6 replies

MeltedBrain · 17/10/2023 19:20

Our house is on the market. It's been a couple of weeks; we've had a few viewings and have three more in the next two days.

We have some outstanding short term loans which are making things tight for us financially. DH is the beneficiary of a will which will result in those loans being paid off, but executing the will has been dragged out to a ludicrous degree already, so we don't know when it will actually happen. It involves a house sale, and even if the house went on the market tomorrow (which won't be happening), and sold immediately, it would take at least 3 months to go through.

I have applied for a mortgage of an amount we'd be comfortable paying back, €500 per month lower than our current repayments.

The bank has messaged me today to say that they won't process our mortgage application till the short term loans are repaid. I don't understand the logic of this, given that the repayments would be so much smaller, but it is what it is.

I don't know what to do. We have viewings tomorrow and I don't think we can realistically leave it on the market, can we?

OP posts:

NerdyIsMyMiddleName · 17/10/2023 19:36

It's probably because they don't think you can afford the repayments because of your other debts (which I assume they don't think will be paid off by the mortgage). I'd wait for a bit if you can, until your finances look more healthy. How long are the short term loans for?

Original poster

MeltedBrain · 17/10/2023 19:47

There's a few years of loan repayments left. But the repayments on the new mortgage would be smaller than we're currently paying, and it's the same bank. I would have thought they'd prefer it.

We probably do have to come off the market, I don't see any other reasonable option.

OP posts:

WYorkshireRose · 17/10/2023 20:05

Speak to a mortgage broker.

Original poster

MeltedBrain · 17/10/2023 20:34

That's a thought. I don't know anything about them. Is this likely to be something they could sort out?

OP posts:

pecanpie101 · 17/10/2023 20:51

Speak to a mortgage broker they will have access to lots of different lenders. Could you sell your house then move into rented? Wait for your DH money to come, pay off the debt and then look to buy?

WYorkshireRose · 17/10/2023 20:55

MeltedBrain · 17/10/2023 20:34

That's a thought. I don't know anything about them. Is this likely to be something they could sort out?

A decent broker will be able to search the market to find you the best lender and terms to suit your needs. You're therefore theoretically more likely to be accepted for any mortgage they put you forward for. And many make their fees from the lender, so you don't need to pay them. London and Country are a good one.

Flip