Transfering a mortgage??

rover25

I am in negative equity at the moment but would like to move house in 18mths - 2 yrs time. I would be able to afford a larger mortgage so am wondering if it possibly to add on the negative equity amount onto a new house mortgage. eg
if in negative equity for 20 grand. Can I add this to new house mortgage eg 140,000 +20,000 to make 160,000
Will I need a deposit again or not as I will be keeping the same mortgage in theory whilst increasing it.
Would love to hear ideas. Thanks

luckyfool

Basically? No. The lender only agrees to port the mortgage based on their prevailing criteria at the time. i.e. On any new property if they are only offering 90%, this is likely to be what they will offer you.

matthew74

So if you were in good standing with your lender, have a huge cash deposit available and threaten to take your mortgage elsewhere would your mortgage provider still not transfer any negative equity over to a new property?

silvercar

matthew74 wrote: »

So if you were in good standing with your lender, have a huge cash deposit available and threaten to take your mortgage elsewhere would your mortgage provider still not transfer any negative equity over to a new property?

NO.

Use your huge cash deposit to get out of negative equity.

rover25

If you pay 10% as a deposit on your new total mortgage is it possible then?
Did this process not occur in the last previous crash- negative equity mortgages?

_Andy_

rover25 wrote: »

If you pay 10% as a deposit on your new total mortgage is it possible then?
Did this process not occur in the last previous crash- negative equity mortgages?

Yes it's possible, but given you're in negative equity for £20,000 where are you going to find the money to pay for that, the deposit, the sols fees, etc etc.?

rover25

personal loan:eek: . These all are all just early thoughts. Just wanted to know if it was possible.
The 20,000 grand would be added onto the new mortgage. Would need deposit and solicitors fees

matthew74

My issue is this - say for simplicity I am £100000 in negative equity. I also have £100000 in savings.

Say I want to move to a house worth £400,000

If I use my 100,000 to get out of negative equity I have 0 deposit for a new house and need a 100% LTV mortgage - fat chance.

If I keep my £100,000 in savings I can use it as a deposit on my 400,000 house, transfer my 100,000 negative equity thus giving 400,000 required - an LTV of 80% - a possibility.

Are you still saying this is not possible - mortgage providers definitely wont let you do this?

silvercar

Whichever way you get to it, the end result is that you want a 400k mortgage secured against a property worth 400k. This is 100% LTV and is just not available at the moment.

It remains to be seen if any lender will consider your case to be any different to a first time buyer asking for a 100% (no deposit) mortgage in the future.

matthew74

Silvercar thanks for your constructive comments - I think a combination of savings and staving off negative equity by overpaying is the way forward.

_Andy_

rover25 wrote: »

personal loan:eek: . These all are all just early thoughts. Just wanted to know if it was possible.
The 20,000 grand would be added onto the new mortgage. Would need deposit and solicitors fees

Not going to be possible I'm afraid.