Help on housing

missplum

I currently have a house with approx 10k equity. if i found a part exchange deal on a house which is 100k and had a 90% mortgage available to me would it be possible to do a deal. ( i have no money in bank).

Therefore my question is would the housing company pay me for my home which would leave me with no mortgage and 10k. Then i could use this to put down 10% shortfall on the new house. 90k mortgage and 10k left over from part ex. (100 k house) then any additional fees by housing company i might be able to do a deal with them on. Am i right with this?

also my other question is; are bungalows a better buy in the housing market as present as i heard they keep value more. I am interested with a few in my area, all around the 120k mark although i would offer less to try and get a bargin. (say 107-110k?) (see link: http://search.issl.co.uk/DetailsLite.aspx?chainid=1666&propertyref=BIA-10FT0X5M&Source=Globrix)

Home_Swap_Advice

This question is slightly confusing but I think I get the gist of it. I think that you will be hard pressed to find a house from a builder that is 100k and is being offered for part exchange. If you do find any, I would have thought that the builder would be looking for at least a 30% difference in price, (ie yours would probably have to be £70k maximum). It would help to know how much yours is worth).

Forgive me if I have misunderstood your question.

With regards to your bungalow question, it is worth putting in an offer.

missplum

if that's the case a part ex won't be suitable for me as i thought that if the bank would only give me a mortgage of 90% of the value of the house, then the remaining 10% i could cover from the deal on my own home.

so what you saying: if the new property is worth 100k and mine 70k. I only get accepted for 90k mortgage (90% of house value) is not enough to cover the remaining 10k. But if i did have the 10k i would be able to proceed and then i would get 10k back from the builder from my old home after expenses, on completion which makes me wonder if i should just get a short term loan to cover deposit?!

Doozergirl

missplum wrote: »

if that's the case a part ex won't be suitable for me as i thought that if the bank would only give me a mortgage of 90% of the value of the house, then the remaining 10% i could cover from the deal on my own home.

so what you saying: if the new property is worth 100k and mine 70k. I only get accepted for 90k mortgage (90% of house value) is not enough to cover the remaining 10k. But if i did have the 10k i would be able to proceed and then i would get 10k back from the builder from my old home after expenses, on completion which makes me wonder if i should just get a short term loan to cover deposit?!

What you just said in your OP is right. I don't quite understand what HSA said to you about why a builder wouldn't like what you suggest but I am possibly interpreting your OP differently as admittedly it isn't worded very clearly.

The equity in your house acts as the deposit for a new house. You don't have to come up with any more cash unless you need a larger deposit for mortgage purposes.

If the builder offers you 70k on your house, your 10k equity becomes the 10% deposit on the 100k house. You may have to come up with a reservation fee and solicitors fees in real money though!

Home_Swap_Advice

What Doozergirl said is right. What is the value of your home?

pinkshoes

You'd need £1500 for solicitors and buying costs, and about £1500 estate agent fees for selling, plus moving costs.

If you have nothing in your bank account, then you'll need to start saving just to pay for the basics.

Also, if you're struggling to save anything now whilst paying your current mortgage, how do you propose paying for a larger mortgage??