Possible to transfer most of mortgage to another provider?

Scammie

My husband and I are in considerable debt as we had intended to pay loans off with the equity in our home - but had not counted on the property crash......... As a result we are living on credit cards. We have been able to maintain all our loan payments to date and will be able to for another 7-8 months, so there is no history of default etc.

Our mortgage deal ends in April and we have been hoping to reduce our payments and thus ease the situation until the house sells. I am fairly savvy where mortgages are concerned, but as we are in such debt I am worried we will not be able to get a competitive deal.

We owe 150K one our main mortgage and have two additional mortgages, one for 30K and the other for 10K. We also have aprox 30K in loans.
If we do manage to get approved for a mortgage despite the credit commitments, can anyone tell me if we can transfer the main 150K mortgage to another provider and keep the remaining 40K with our existing lender? I am asking because, having done a few 'HOW MUCH CAN YOU BORROW' buttons on several websites, it looks as though we won't be accepted for more that the 150K.

I would appreciate any help you can give, feel really depressed about it all at the mo....

VIGILANT22

I doubt if I am going to make you feel any better...

What you have are secured loans/2nd charge...(don't tell me 1st Plus!). Some lenders used to agree to (a letter of postponement...) however now most lenders would not take this risk.

I think you know the answer yourself.....I think you should be seeking debt advice, as servicing debt with debt is a high risk area.........Don't be afraid/embarrased to seek help, many sadly are in your position....Don't bury yr head in the sand...good luck

VIGILANT22

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Scammie

Thanks for this, and you are absolutely right, we do need to sort the debts. The issue is that we have enough equity in our property to clear all debts and have a deposit for another home, we just need to sell the house. I have looked at deby help but as I would need to reduce payments on all my outstanding credit, not just the loans, I would end up with a bad credit history and poor mortgage deals in the future. If we have absolutely no option then of course we will have to go down this route, but while we can still manage to pay everything then I am hoping to hang on until the house is sold.

Our current mortgage is with A&L and we will be on the SVR from April, saving over £120 a month, so while this is good, especially as one of our loans is paid up in June, saving us another £150, if we could secure a good discount or tracker rate, we would be able to stop using the credit cards to live and even pay more back on the credit cards.

Is there no way we could leave the additional lending with A&L and then take out remainder with someone else? We would still have 25% deposit/equity even with this additional lending.....

beecher2

How long's your property been on sale for? Maybe it is priced too highly? Why do you want to get a new deal if you're selling up - surely it is simpler to stay on the SVR until it sells?

you can't have two mortgages on the same property

SouthCoast

Post on the Debt Free Wannabee Board for advice on how to live within your income.

Scammie

It has been on sale for 3 years, just went on at the peak of house prices, however I appreciate what you are saying and we have reduced the price considerably, it is in fact now 85K lower than the same houses in our development. However, we live behind a railway line which has put a lot of people off, but that's another story....

You're right, I had resigned myself to staying on the SVR, but then found there were quite a few deals with no early repayment penalties which would reduce our payments considerably (until the house eventually sells..)

Thanks for the clarification, it looks as though we will have difficulties in switching then....

Conrad

Whats the property's accurate value and how much mortgage would you require? (90% max).

Scammie

House is on market for £287.500, (other houses in development on at £325K up to £365K so think this is fair valuation).

Current mortgage is £152 plus another £40K in additional lending, so £192K in total.

Gives us bit over 25% deposit.

However, personal debt on top of this is aprox 35K.