Mortgage advise

lindamcd

Please help I am currently trying to sell my house and have decided after meeting my partner that when I sell we would like to buy something together. However this is where im struggling: My current mortgage is £80,000 and the equity will be about £25,000, however I want to use this money to pay off my secured loan, so I wont have a deposit for a new house, is that going to be a problem?

Also I got into a bit of financial trouble and currently setting up a debt repayment plan. I haven't had any legal action or anything taken against me but worried this might affect my chances of getting a second mortgage.

Any advice would be appreciated

~Beanie~

You will need a deposit to buy a new house yes, so unless your partner has enough savings then you will stuggle.

Being in a DMP is also likely to affect your chances of getting a mortgage as it will have had an impact on your credit rating.

_Andy_

As you don't have a deposit you won't be able to buy at the moment.

lindamcd

Thanks for your advice. Are there any options - do I have to repay loan or can I use that money to pay deposit and keep secured loan on new property. Help with all my options would be greatly appreciated

_Andy_

There isn't any money or deposit - once you have paid off the mortgage and secured loan there is no equity, thus no deposit for any new place.

Batchy

why are you selling current property?
your net worth is zero... be thankful its not worse

happybroker

it is possible to ask the lender of your 2nd charge loan if it can be ported to the new property but I doubt they would go for this given the current climate I'm afraid.

If you have a bit of a ropey history you are going to need a pretty sizable deposit to get anything like a reasonable rate of interest....sorry