Selling, moving and remortgaging.

eleerin

I am planning to sell my house and move to another area, Current value of house is 155,000 mortgage is 143,000. At time of mortgage I took out an unsecured loan of 27000 which is tied to the mortgage but is as I say unsecured.

Because of this and other debts credit cards loans etc. I am worried that I may not get another mortgage. I have been looking at a sort of shared equity with Barratt homes where they give a 15% interest free loan for ten years and I would have to pay 5%. Does this mean I would only need an 80% mortgage. All this is joint with my wife we do not have any adverse credit although we have a lot of debt it still gets paid.

Any advice would be appreciated.

beecher2

Ask your lender if you are allowed to sell up and move without paying off the mortgage and the loan. As it is tied to the mortgage you may have problems - they may not allow it, or they may hike the interest rate. You say you have debts - where would the 5% deposit come from if you were allowed to move?