Mortgage Options (Porting a NR together mortgage?)...

jimbo5661

Good afternoon

I have a mortgage with Northern Rock, it's on the variable rate of 4.78% - i owe £126,800 and my house was valued last month at between £110 - £115K. I took out the mortgage in Oct 04 on a 7.15% fixed, which recently came to an end.

My girlfriend recently sold her flat and walked away with £31k.

We're wanting to move to a larger house with a value of around £180k.

Can we port the Nrock mortage across to the larger property at the SVR which at the moment is OK? Or are there other mortgage providers / products out there that can assist that aren't a complete rip off?

I earn £32k with a usual overtime of about £8k per year, my girlfriend earns £34 with no overtime possibilties.

I'm currently overpaying £200 per month in the hope that the capital amount owing and the value of my house will meet in the future!

Any advice welcome!

Tuscan

you will have to pay the difference between the sale price of your house and the outstanding mortgage, you cant transfer the negative equity to your new home.

in other words you will have to use some of the 31k from your partners sale to pay off your outstanding mortgage and selling/legal fees, and then you will need a deposit and fees for the new home....

opinions4u

You need to have enough funds to repay your NR debt, pay selling costs to estate agents/solicitors and pay the deposit, legal/survey fees and stamp duty on the new place.

- negative equity £12k (possibly £17k)
- deposit £18k (possibly £27k)
- selling costs £3k
- buying costs £3k

So you need somewhere between £36k and £50k is cash to achieve this move.

picardygirl

Jimbo5661 ... i'm assuming you have got a Northern Rock Asset Management as you are in negative equity, so you wouldnt be able to port that mortgage over to a new property as they are not "lenders" anymore. You would have to apply from stratch with a new lender, whether that be Northern Rock plc or somebody else.

If i've assumed wrong i'm sorry and please correct me.

jimbo5661

Thanks guys, guess i'll have to keep overpaying for a bit and hope my house goes up in value. I was also considering the option of renting it out and waiting for the value of the property to rise again, but each month it would leave a shortfall of around £100 (at the current low rates) which would obviously rise as and when interest rates go back up...

Any one got a magic wand?!