Advice Needed Please Help!

moflo_2

Hi,
I am hoping someone can help me understand my situation.

I took out a Northern Rock Together mortgage with a secured part of £140,000 and an unsecured part of £32,000 equalling £172,000.

I want to move house and buy for a smaller value therefore decreasing my mortgage liability.

My house is currently worth about £145,000 (I have people booked to value this week).

I have spoken to Northen Rock and they have advised that I currently owe 119% of my properties alue. They are prepared tomatch this for another house up to 119%.

Apparently they have explained that if I want to buy a houe for say £120,000 I would have to make up the mortgage? I don't really understand this. Is it because 119% of £125,000 is a lot lower than 119% of £145,000?

So if I sell my house and buy nother for £145,000 OK I won't be reducing the mortgage but may be abe to get a bigger house in another area.

However, If I bought for £125,000 I wouldn't have to pay stmp duty and if they make me buy at £145,000 I will have to. Is there anyway around this?

Can I buy a house which is advertised at £125,000 but offer £145,000 and arrange some sort of cashback deal with the seller? I could then pay the stamp duty and the fees and pay a lump sum off the mortgage. Is this possible or am i living in a dream world?

I find it very hard to beleive that I cant sell my house for a higher price and buy for a lower - surely this would mean I am less ofa liability to Northern Rock and they would get some of their money back? Am I missing something?

Also, do I have the option to just leave the secured part where it is - sell the house and pay off the secured and then buy the new house? the secured part would at least then reduce.

Thank you for your help in advance. I really would appreciate some advice.