Help needed-selling/buying/deposit...

claires_123

I bought a house with my boyfriend in June, because I had some equity from my old house we were lucky enough to put down a deposit of approx 11%. We are now doing a really stupid thing & have decided to sell the house after only 5 months purely because we bought in the wrong area & both really miss where I used to live & it is making us unhappy enough to not mind losing a few thousand. We are obviously going to make a loss on the house & are having to market it lower than what we paid 5 months ago even though we have made several improvements to the house we are on a new development & have been told we can't compete with the builders.
We are having no trouble at all affording the house with the mortgage payments etc but when we sell - the houses we are looking at are approx the same amount as ours was - even a bit less. The problem we are going to have is that I'm not going to be able to afford a 10% deposit - I may have if we're lucky about £10,000 to put down on a £165K house. Are there any ways around this I have heard people say you can get the vendor to up the house value or to put in a % deposit themselves - I need basic help really on how to get a house without having to change mortgage & pay big fees & to get a house we know we can afford but what lenders aren't allowing?
Hope I make sense - all help appreciated!

dander

Sorry to be the voice of doom, but I'm not sure you're making a wise move. It's surprisingly expensive to buy and sell, with the ea fees, the legal fees, stamp duty, mortgage arrangement fees, survey fees, etc etc. Add to that that you might get a lot less for the house than you paid for it, you might actually end up with virtually no deposit at all! :eek:

Not to mention, that as you say yourself, your place is likely to be tough to shift in the first place if you've got builders offering incentives, part exchange etc on brand new versions of your place.

You really might be better off learning to love your existing home!

claires_123

Yeah we know about all that as I only sold & bought this June. I have quotes & our fees are going to be about £3000 & luckily the builder have stopped incentives such as part exchanges etc... Our house is a completed version of the 'shells' the builders are selling for more money. We have done a lot of work to improve the house & we paid for lots of extras. But I know we are still going to struggle. We do love our home as a house but just want to pick it up & move it.

Richard_Webster

Even if your lender will allow you to "port" your present mortgage "deal" to another property this will be subject to their current rules about lending, so if the loan to value ratio is more than the ratio they will presently allow then they will only lend the lesser amount on the "new" property. In 99% of cases even with "porting", the loan on the present property has to be paid off and a new loan amount is sent for the "new" property. If "Porting" is allowed the only difference is that the solicitors are allowed to deduct the penalty that otherwise would be payable when the old loan is repaid. So you don't actually keep the mortgage - it is paid off and a new loan is issued with similar terms to the old one, but possibly with a revised amount if the LTV ratio would not otherwise be acceptable.

Inflating the price and the selling "paying" the deposit has to be revealed to the lender by your solicitor. It is professional misconduct not to do so, as the solicitor could be a party to a mortgage fraud..

Lenders were often nodding and winking at a lot of these incentives because they wanted market share, now they want to be seen as responsible, and don't want their share price to go down even further because of irresponsible lending, so they are unlikely to accept this kind of thing. If they are told about a "paid" deposit then they will probably simply deduct the amount from the sale price work out their values and loan to value ratios accordingly.