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want to move - what costs should I consider?

Current mortgage is £181,000 which inlcudes £21,000 which we borrowed on top of the house price - yes, we were one of those stupid people :(

Anyway - we want to move back to where our families are now that we have a 1 year old boy and I have started looking for a new job, have an interview next Friday.

Wages are a lot less in the new area so we will have to downgrade and are looking at £130,000 properties. To do this move, what costs do I need to consider and will it even be possible?

I'm guessing the house would have to sell for over £181,000 but how much more? Would we even be able to get a new mortgage if the house sold at a price giving us no surplus for a deposit?

Any other ideas on how to make the move possible would be gratefully received, and moving in with family is not an option due to space.

many thanks

Comments

  • Hi puddles

    I would imagine that you would need to sell you current house for the amount of the current mortgage plus the deposit you would require on the new mortgage plus the fees for buying/selling (assuming you have no savings to use for these fees). I would presume that you need to clear your current mortgage fully and I don't think that you will be able to transfer the shortfall from the sale of your current house to your new mortgage.

    Hopefully someone will be along shortly to provide some better advice.

    Fluff
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    what fluff says is correct. can you rent out your present house in an expensive area, and rent somewhere cheaper in the new area until the market improves and you could afford to sell and then pay off the large mortgage ?
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You will need to check the details of your current mortgage+extra loan.

    Some companies will separate the two and allow you to sell the house if it covers the mortgage, taking the extra loan over as unsecured lending. Some won't and will want full settlement when you sell.

    In any case, when you sell the house, in order for completion to occur you will have to settle the mortgage part in full, this might mean further borrowing if you're really unlucky.

    Moving forward, you will need a deposit on any new house. You will also probably need to prove a reasonable amount of time in your new job. Overall, it's best that you think of renting, not buying, after selling your existing house.

    It would not be a good idea to rent your existing house and rent in the new area. You would need your lender's permission. What if you can't get that? What if you can't get a tenant? What if you get a tenant who doesn't pay? All problems.
  • pinkshoes
    pinkshoes Posts: 20,230 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    When did you buy your house? Have you looked on houseprices.co.uk to see what similar houses have sold for recently?

    To get a mortgage, you'll need AT LEAST 10% deposit, then money for buying and selling, so realistically you'd need to sell yours for £195k+ to have enough to buy again.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • puddles
    puddles Posts: 129 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Thanks for all the replies, I think we'll be staying put for the time being and sort out some bits to make it look nicer for when we do come to sell in the future.

    thanks again
  • puddles
    puddles Posts: 129 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    As an update to this - the first valuation of the house was at £200k with a look to selling at £190k. I am thinking this isn't enough if we need a deposit too. Is there any way of getting a no deposit deal with these circumstances?
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