Wednesday 4th November Daily Chat - Everyone join in!!!

spud30

Sal, if you're still about....the La Senza site is working again

edit - Oops, no gone again, sorry !!!!

double edit - working here

postingalwaysposting

Thanks Spud, Sally and Snaggs. Still sounds complicated but I guess thats what solicitors are for. Snaggs when you say you take out a new mortgage do you go with the same company? The only reason I ask is because does it work like credit? Or is it totally different?

What I mean is if you have a mortgage for house A with Lloyds and you want to buy house B but get a cheaper mortgage with Natwest. You say there is a charge on your account so surely when Natwest would be searching you and seeing if they will lend to you, you may well still have a £40k mortgage if you are in a chain? Or do you make it known you are selling your first house?

Does that make sense?

Snaggles

Yes, it makes perfect sense.

One of the questions that Natwest (in your scenario) would ask you is whether or not you are selling house A when you purchase house B.

If you are, they know to just ignore the mortgage you have with Lloyds, as it will be repaid at the same time they draw down (basically open the account and let you/your solicitor have the money) the new mortgage.

Your solicitor deals with both the sale and the purchase, and if you tried to keep both properties (ie to rent one out), they would write to Natwest and say 'Mrs Pap is going to have TWO properties as she isn't selling the first one, were you aware of that, and does your mortgage offer still stand?'.

So you couldn't 'get away with' not telling the bank, even if you could afford to buy house A without selling house B first.


Edit - To answer your initial question, you don't have to go with the same company, no. You would just shop around for who has the deal that suits you best.

sallyx

well explained snags

postingalwaysposting

Thanks Snaggs, makes it all clear now One final question, if you were purchasing with cash I guess it still all goes through the solicitor's? Ie you couldnt pick a house you want to buy and then pay the vendor through his bank it would all have to be legallised (sp?) through a solicitor?

I will leave you alone then ~ promise

Snaggles

postingalwaysposting wrote: »

Thanks Snaggs, makes it all clear now One final question, if you were purchasing with cash I guess it still all goes through the solicitor's? Ie you couldnt pick a house you want to buy and then pay the vendor through his bank it would all have to be legallised (sp?) through a solicitor?

I will leave you alone then ~ promise

Yes, it would still go via the solicitor because you would still need searches doing to make sure you weren't buying a house on top of an old mine or something, and that no-one else had any kind of hold over the house you were buying, and to ensure planning permission had been granted etc for any work that had been done to the property (I'm sure they do other stuff too...can't think what though....lol) and the solicitor would still need to register you as the owner of the new property with the District Land Registry.

(I have heard of people doing their own conveyancing (the legal work), but it seems complicated and risky to me, not something I have any clue about).

You don't have to leave me alone hun, this is my area, I feel useful for once!

sallyx

yep you would still use a solicitor pap

sallyx

right must go to bed..although feel a bit icky (hope its not the sickness bug going around at school)

Catch you tomorrow xx

postingalwaysposting

Thanks Snaggs and Sally I guess you would still have soliciter fees for that too... Great Snaggs, I thought you worked in banks but I didnt realise it was mortgages. Once final thing because I have just found it again on my travels in mse :rolleyes: Some have said 'can't I just had my keys back to tgw mortgage company', I guess like voluntary repossesion How does that work? Surely if the house is then sold you would have to pay the fees? Also if it sold for less than the mortgage was for you would be lumbered with a loan for the outstanding amount? Surely if you were in difficulties with money you would want to keep your house rather than make yourself intentionally homeless and thus unable to get council housing plus you may still come out of it with a loan anyways?

Night Sally :A

Snaggles

Voluntary reposession is a last resort because it will still haunt you for years just like an enforced reposession does. It will be on your credit file for 6 years.

The bank would sell your house as quickly as possible, so wouldn't necessarily get a good price for it, and they would take their fees off the amount the house sold for too, so yes, you could still end up owing them a lot of money, and having no house.