Can you incorporate exisiting debt into a new mortgage?
A Mortgage is secured on the House. The days when you could get more than the house value are long gone. Theses days you will get a maximum Mortgage of 85 to 90% of the house valuation. The valuation may even be lower than what you are paying for the house (never higher) Also, the Mortgage Co. is going to make it’s offer on what it thinks you can afford to pay back …. this is based on a Salary ‘multiplier’ … when they see you are paying out £300 a month for other debts they will only offer if you are earning a higher Salary … Say the house is valued at £200,000 & you get 90% Mortgage .. that’s £180,000 .. to get this you will need a ‘Multiplier’ of 5 and an annual salary of at least 180/5 = £36,000 a year (actually, more likley your multiplier will be 4 or even less – so you will need to be earning 180/4 = £45,000 or more) … Also you will have to find the ‘Deposit’ – so if the Mortgage offer is, say £180,000, you have to find the ‘extra’ £20,000 to pay the seller £200,000 for t
