Do we need a 10% deposit to move to house?

Belle81_2

Hiya. I'm after some advice please.

I have a new better paid job in Manchester so we need to move house (from Shrewsbury). Our oustanding mortage is £81k. The Estate Agent has told us to put on for £89995 (we're currently on for £95k). If we sell for (eg) £87k can we buy for £87k and keep our mortgage at £81k or would we need a 10% deposit again?

We bought for £98k but can't sell at this. We would sell for £85+ but it depends on whether we would need to find money for a new deposit. We only have about £5k in savings as used some to pay off debts.

Thanks.
Sian

shortchanged_2

It is likely any lender would want at least a 10% deposit on your next house. So to get this you will probably need to buy a cheaper property or have a larger deposit.

beecher2

Selling up and renting until you've built up a deposit sounds the best bet. 90% mortgages are only for those with perfect credit files, so keep this in mind too.

sarkin1

Why dont you phone your current mortgage service centre they will tell you

Thrugelmir

You'll need to find 10% of the property purchase price, at the point of exchanging contracts when you move house.

Conrad

10% for perfect cases on repayment basis only.

opinions4u

Nationwide will advance some existing borrowers 95%.

As others have hinted, you really need to be talking to your current lender about what they can do - and if it's not acceptable then a broker is the most likely route to getting a decentish deal up to 90% LTV.

Conrad

opinions4u wrote: »

a broker is the most likely route to getting a decentish deal up to 90% LTV.

Some more attractive direct deals are available not via brokers.