How will it work?

Kbaby

Hi all, Im looking for some advice please. We are looking into selling our home and going for a cheaper one. We have been in the current house for 2 years, we were first time buyers and we got 100% mortgage. How will it work with our mortgage if we go for a cheaper house?

Many Thanks in advance:)

beecher2

You need to find out if you're in negative equity - what's a realistic value for your property? How much would the house be that you'd like to buy? Is your mortgage definitely portable? And have there been any changes to your credit/salary in the last two years? Do you have a deposit saved?

If you answer some of them people will give you a better idea of whether you can move or not.

_Andy_

Kbaby wrote: »

Hi all, Im looking for some advice please. We are looking into selling our home and going for a cheaper one. We have been in the current house for 2 years, we were first time buyers and we got 100% mortgage. How will it work with our mortgage if we go for a cheaper house?

Many Thanks in advance:)

I'm assuming you don't have any equity - thus, unless you have a large amount of savings, you won't be able to move as you won't have a sufficient deposit (i.e. 10%+)

Kbaby

Getting the house valued next week. Im thinking we might break even with the price. We would be looking to go to a house about £10,000 cheaper. By the replies Ive had though it doesnt look like we will be going anywhere!

beecher2

If you only break even then you'll need a deposit for your new place. Might be an option to sell up, rent and save a deposit?

poppy10_2

If you got a 100% mortgage 2 years ago it is highly unlikely you have any equity at all. After sellling costs are taking into account you will not have enough to fund the deposit to purchase a new house.