Hi sisterhood,
My hubby and I are saving like crazy to try and come up with a house deposit, it will be small, but something is better than nothing I say. We both had debt when we met, and it's rather large. We could be saving to pay the debt off first as some of you may suggest, but realistically this will take years. (If we could go back to when we were young and dumb and undo that debt, oh how we would!) My question is, can we take out a home loan and combine what leftover debt we have with our mortgage? Surely having everything included in the one payment would lower the amount of interest we would end up paying over time, and probably even lower the amount we pay each week combined on rent, credit card repayments, loan repayments, etc. I'll enquire about it with the experts of course, but I don't want to sound like an idiot when I ask!! I'd like to know what my options are before going in blind. Thank you.
4 Replies
no, they will only let you borrow what the house is worth. So you'd need to borrow more than the house is worth.
Plus you need more than a deposit because you'd need to be able to pay stamp duty.
No, a home loan is an entirely separate entity. You can build equity in your home and borrow against that but by the time that was an option you'd want to already have those paid out.
No, not usually but definitely speak to the experts. Normally they'll want to see you debt-free but even if you looked at consolidation of the current debt into one payment (if you haven't already) to save fees/interest might look better.
They used to let you do this. But not anymore. Very strict nowadays.