secured loan against property & moving

ilovephones

Morning all,
I've got a secured loan against my masionette of £45k, and want to move property very soon.

I'm concerened about this, as due to falling house prices, we will probably make £15k max on the house, that we would want to use to cover the fees and a deposit on the place we intend to buy, but I'm not sure how the loan would work out.

Would the loan company (Picture Financial) look to use the equity we have in the masionette against the loan, can it be transferred, if so, is that an easy process?

Or would it be worth getting a bigger mortgage to pay that loan off?

Any help/other options would be greatly appreciated!

Rafter

Picture will have to agree to release their charge and transfer it to the new property.

If the £15k equity is before the picture loan, they could refuse the sale and they would certainly want the £15k rather than allowing you to use it as a deposit.

Best thing is to call them and ask how the process works - make sure you solicitor is aware of the Picture loan too to avoid delays with the sale process.

Good luck

R.