I have a home which is shared ownership and I own 40%. The sold price is £240,000 and therefore my equity share is £96,000.
My current share was for £72,000 with about £50,000 remaining on them ortgage if redeemed. I do however have credit cards totalling about £30,000 which will be repaid when the equity is released upon sale. Would it be easier to move the mortgage and add the debt to the new loan or would I have to sell my place and rent to clear my debts before buying. I would have a 10% deposit.
Thaks for your help
Ask the Specialist response:
Thanks for your enquiry.
Your circumstances are complex, however, not necessarily unusual for us. Most lenders in the current climate would want to know the reasoning why the previous debt was built up and ensure that this won't happen again. If the payments were going to be higher in the new property compared to the previous mortgage and rent payments combined where the debt has already built up once it would be particularly difficult convincing a lender to help.
However, it should also be noted that were all debts to have been correctly facilitated and you have a high credit score we may be able to still help
If you just wish to obtain an indication on whether we are able to assist you, given your specific circumstances, I'd recommend speaking to one of our Advisers on 02077100400 or send us an enquiry online and one of our Advisers will call you back.