100% Mortgages

kellymo

Two and a half years ago my partner and I bought an apartment and had a 100% mortgage from Northern Rock. We now want to move to a larger property and have had our apartment up for sale for 9 months. When I first enquired to Northern Rock about additional borrowing, they informed me that it wouldn't be a problem. However, that was 9 months ago. Northern Rock have now told me that in order to buy a new property, we will now have to have a deposit to the value of 15% of the cost of the new property as they now only do 85% mortgages.
My question is that if we get a loan from another bank to cover the 15% deposit, will this be acceptable in order to secure the new 85% mortgage with Northern Rock?
My partner and I both have a good credit history.
Any advice would be appreciated!

dunstonh

My question is that if we get a loan from another bank to cover the 15% deposit, will this be acceptable in order to secure the new 85% mortgage with Northern Rock?

The loan repayments will effectively reduce your income and could see you falling short there.

lowis

i may be wrong but i think that you will have to declare the loan when you apply for your new mortgage, this will then affect your affordability, lowering the amount you are able to borrow on your new mortgage.

that's what happened to me when i applied for my mortgage with nationwide anyway.

brightbuy

I doubt very much that your current property is worth what it was when you bought it, which may explain 9 months on the market and no sale. You are most likely going to be in negative equity. Getting out of this situation is going to be your main concern, depending on your property you could be £1,000 to £100,000+ down, only a valuation from a surveyor would be true to your cause, I doubt the estate agent has been very honest with you or you haven't listened.

koexelek

lowis wrote: »

i may be wrong but i think that you will have to declare the loan when you apply for your new mortgage, this will then affect your affordability, lowering the amount you are able to borrow on your new mortgage.

that's what happened to me when i applied for my mortgage with nationwide anyway.

They would see it on the cedit report anyway.

Also, I believe if you move your mortgage away from Nortern Rock, the interest rate on the unsecured loan goes up by about 5%:eek: