Mortgage porting...

gbman69uk

Hi in hoping someone can help! As i feel im not asking the right questions.

Here is my current situation...

I have a house up forsale at the moment and im looking at getting a home with my girlfriend. My house is currently up for sale at £107.500 (now reduced from £114.950) and i owe £95.000 on the mortgage. We're looking at a house for £135.000. Now my mortgage is in my name only and is portable i have 14 months left on my fixed rate (£5000 early release) so ive looked into porting the current £95.000 and adding an additional £40.000 and my girlfriend onto it taking it to £135.000 and now two incomes onto it. Sounds simple? Not so...

Yes i can add the additional £40.000 and add my girlfriend not a problem, the catch is i'll need to stump up 15% of the house value not 15% of the £40.000.:mad: Now we have around £7.000 in hard cash but no where near the £20.000 (about) that they want now is there any other way that we can raise this extra £40.000 using my girlfriend who earns £26.000 and is a primary school teacher and add this to my existing mortgage?

Please help!!!

inca_2

Hiya,

If you are looking at buying a house worth £135000 you are realistically going to need at least a 10% deposit. Have you considered keeping your house and your girlfriend moving in with you in the short term to try and save a bit extra money for a deposit? House prices are falling at the moment in most areas so the longer you save the less you'll need if that makes sense?
What are you doing with the eqiuty from your sale? is that included in the £7000 you have already?

herbiesjp

Exactly - are you able to put of the funds from the sale of your property towards the deposit? WIth the £7k you will then be close to the £20k figure

Can family help out with any small difference needed?

gbman69uk

Well the problem that is posed by that is that she will then need to driv 45mins-1 hour to work everyday. So her moving into mine although it would be perfect just isnt an option. Here is how i would roughly work out how much money i'll have.

Sell the house for 102.000 leaves £7.000 in equity
minus all the fees etc about £5.000 leaves us with £2.000

We have £6.000 saved up so we now have £8.000
plus a £95.000 portable mortgage. so in theory £103.000 so really i need £32.000 by some how incorperating my Girlfriend. Im the only one on the £95.000 mortgage.

The frustraighting thing is the banks say they would offer us a mortgage for up to £225.000 as we both have very helthy jobs, but all we want is a mortgage for £135.000 and because we dont have 15% deposit they give us the finger!

beecher

Plenty of people commute for more than an hour so I wouldn't dismiss it completely. I also don't blame the banks for wanting a large deposit in these financial times, and don't understand your anger at them wanting a % of the actual deposit, rather than of the ported mortgage.

Realistically your options are probably for your gf to move in with you, and to save up £15,000 or so and then look to move, or to sell up and rent til you've saved it up.

lynnexxxo

Essentially you are looking to get a mortgage for 135 with only a 8k deposit. Thats only a 5ish% deposit. In the current climate most lenders are looking for a bigger deposit.

I know you have a 'portable' mortgage but this just means that if you meet the lenders criteria they will allow you to port the mortgage.

Although in the past you may have been offered 225k with a very low deposit I can't imagine you would be offered this in the current climate.

I commute between 30 mins and an hour each way to work (longer one day when I have to take my kids to their grans house). Its not much fun but you do get used to it and quickly it just becomes the way it is.

Given you both have good salaries wouldn't staying put for a year or so and saving like mad for a bigger deposit (plus, more than likely prices will have come down further) be a sensible option?

herbiesjp

gbman69uk wrote: »

The frustraighting thing is the banks say they would offer us a mortgage for up to £225.000 as we both have very helthy jobs, but all we want is a mortgage for £135.000 and because we dont have 15% deposit they give us the finger!

I know it is frustrating but they are not giving you the finger.

You are only looking at the part of the lending criteria that you meet i.e. they can lend you up to £225k

The other part of that criteria is that even at £225k you would need a 15% deposit - and that is the part of the equation that you are not happy with - but unfortunately if you want to stay with your current lender you will have to go along with their rules.

Otherwise you could look for other lenders, but have to pay the penalty fee to get out of yur current deal which I do not think will be worth your while; as other lender are getting just as strict with their criteria as well


As others have said, although not what you want to do, move in together and save up. In the current climate, it could be a blessing in disguise.

gbman69uk

I know that the £225.000 is based on still having the deposit for it but what i was saying is that its frustraiting when they know we'll be able to afford the reypayments of a 100% mortgage, but like you said thats just not the way it is at the moment. I mean even if i found a 90% deal i still need £13.500 and we'll prob only have £3.000 of that after paying the penalty of £5.000.

Thank you all for your info and advice.

beecher

gbman69uk wrote: »

I know that the £225.000 is based on still having the deposit for it but what i was saying is that its frustraiting when they know we'll be able to afford the reypayments of a 100% mortgage, but like you said thats just not the way it is at the moment. I mean even if i found a 90% deal i still need £13.500 and we'll prob only have £3.000 of that after paying the penalty of £5.000.

Thank you all for your info and advice.

Try to think of it more in terms of the risk to the bank - they might agree that you can afford to borrow 100% of the property price, but the problem for them (and you!) is that you'd immediately be in negative equity.