Relocating with a part ex Can it be done with no equity

markelock

I'm looking at moving back down south.

The question is, say my house is "worth" £180k, but I can only trade it in for £150k, my mortgage is £160k, can I trade up to a house worth £300k (I know my current provider will lend me this amount, but only with a deposit)

Do I have to make up the difference, or does any negotiated discount against the new property mean this would be my "deposit"?

Thanks in advance


Mark

Reds-on-Sea

Correct me if I'm wrong, but essentially what you'll be doing is selling your house for £150k, leaving you with a £10k mortgage debt.

You then want to go and borrow £300k with no deposit (& £10k debt)?

If you get the £300k house for £280k, no, that doesn't mean you'll have a £20k deposit, if you're thinking you can borrow £300k on a £280k property, you're asking for a 107% mortgage....highly unlikely I'm afraid, unless you can find a hefty deposit.

If you really need to sell up & move, can you not look into other options, such as renting (out your property & renting another one for you) or simply looking at smaller houses that you can afford?

markelock

thanks

i don't know what my house is worth yet, in terms of how much someone will pay for it, but I'm taking off £30-35k from the value of these houses in my area. I'm also assuming at how much it was worth 5 years ago. I have a valuer coming in in a couple of weeks (I presume they are busy on rental agreements!) Quite interestingly when I looked at borrowing against the house earlier this year, my mortgage co valued it at £214k. I wish!

I'm just wondering if gifted deposits can actually be used in getting mortgages, obviously I don't have any deposit if I sell the house for £150 or £160k, and with the dissapearance of 100% mortgages I would still have the option of renting I suppose.

Reds-on-Sea

gifted deposits do exist, but they're a bit dodgy (& some say fraudulent) as they affect house price figures. You'd need a BIG gifted deposit, prob from a new build housing co, then again, that £300k house might only be worth £150 by the time you come to buy!