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Secured Loan On Property

Leela_G
Leela_G Posts: 82 Forumite
in House buying, renting & selling
Hi

I am currently thinking about selling my flat to buy a bigger property. However i have a secured loan on the property.

The secured loan is for the full amount of equity, therefore if i pay this off i would have nothing left for a deposit on my new property and as we all know 100% mortgages are no longer available.

I know that getting the secured loan was a mistake, but what my question is will i able able to transfer this secured loan to my new property or am i stuck

Thanks for reading / any advice greatly received.
«1

Comments

  • david29dpo
    david29dpo Posts: 3,984 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    As 100% loans are now a thing of the past, your stuck.
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    Leela_G wrote: »
    Hi

    I am currently thinking about selling my flat to buy a bigger property. However i have a secured loan on the property.

    The secured loan is for the full amount of equity, therefore if i pay this off i would have nothing left for a deposit on my new property and as we all know 100% mortgages are no longer available.

    I know that getting the secured loan was a mistake, but what my question is will i able able to transfer this secured loan to my new property or am i stuck

    Thanks for reading / any advice greatly received.

    Are you sure your plan can be carried out? If you move to a bigger property, I assume it will cost more than your current flat? :confused:

    If so, how do you intend to fund the difference in price between your flat and the new property, as well as all the costs of moving? :confused:
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • Leela_G
    Leela_G Posts: 82 Forumite
    i have the savings to move and for lawyers etc, and i can afford the higher mortgage payments. I have done my budget sheet and at the moment i have 1k extra a month.

    I know i should have been saving this to pay the secured loan and not got myself into this situation, but i haven't - and i don't want to dwell on that.

    I just need advice as to whether or not its possible to transfer a secured loan in this climate?

    Again many thanks for the replies/advice
  • Leela_G
    Leela_G Posts: 82 Forumite
    david29dpo wrote: »
    As 100% loans are now a thing of the past, your stuck.

    thanks but i'm looking for some advice
  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    Leela_G wrote: »
    i have the savings to move and for lawyers etc, and i can afford the higher mortgage payments. I have done my budget sheet and at the moment i have 1k extra a month.

    I know i should have been saving this to pay the secured loan and not got myself into this situation, but i haven't - and i don't want to dwell on that.

    I just need advice as to whether or not its possible to transfer a secured loan in this climate?

    Again many thanks for the replies/advice

    It's possible that you could get a mortgage on the new property which will pay off the secured loan on the current one.

    It's difficult to be sure without knowing the numbers.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    No, you can't.
    poppy10
  • Leela_G
    Leela_G Posts: 82 Forumite
    currently my mortgage is 60k, my secured loan is 25k. The new house i want is valued at 100k
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    How much is your house worth?
    poppy10
  • Leela_G
    Leela_G Posts: 82 Forumite
    i think its 80k
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    OK, you're in negative equity. Forget about moving home. Not only do you not have a deposit, you owe money which you cannot pay back. Sorry.
    poppy10
This discussion has been closed.
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