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Porting mortgage to lesser value house

kingmonkey79
kingmonkey79 Posts: 3 Newbie
in Mortgages & endowments
Hi

Can anyone tell me if this is possible:

If have a mortgage of say £125k. Sell my house for £125k. Purchase a house for say £110k and port my mortgage of £125k to that house, using the difference of £125k and £110k to do the property up which would then make it worth £150-£170k.

Many thanks

Comments

  • dunstonh
    dunstonh Posts: 120,331 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Nope. You will need to meet current lending criteria and that will mean increasing your deposit/loan to valuation.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • kingmonkey79
    kingmonkey79 Posts: 3 Newbie
    dunstonh wrote: »
    Nope. You will need to meet current lending criteria and that will mean increasing your deposit/loan to valuation.

    Sorry not quite sure what you mean. Does that mean I would need to increase the current mortgage to what the house would be worth after repairs?
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    You don't have a deposit/equity in your current home so this isn't possible.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    kingmonkey79 wrote: »
    Sorry not quite sure what you mean. Does that mean I would need to increase the current mortgage to what the house would be worth after repairs?

    NO it means you will get to borrow only a % of the value now at purchase,

    95% if you are very lucky,good record,good income
    80% or less if any blemish or income not so good.
  • kingmonkey79
    kingmonkey79 Posts: 3 Newbie
    getmore4less wrote: »
    NO it means you will get to borrow only a % of the value now at purchase,

    95% if you are very lucky,good record,good income
    80% or less if any blemish or income not so good.

    Sorry if i appear slow, but i thought porting a mortgage meant that the mortgage (terms and everything) stays the same and is just transferred to another property. I do not see why a deposit would be needed? :confused:

    Many thanks
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    You still need to meet the current lending criteria. What you're proposing to do is to borrow more than what the new home is worth - this isn't possible on today's mortgage market.
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