Please Help

bally21

My father in law wants to do us a favour. He has just become an ower of a property he part exchaneged with a house he has built. The property is 3 bed and valued at 173,000. He has said he would do a straight swap with our property which is 2 bed just valued this week at 149,950. Our mortgage is 135,000. Our circumstances have changed since morgage taken out 5 years ago as my wife is now working part time as we now have a son.

Our morgage broker says he will find it difficult to get a new mortgage as our earnings are less. Do we need a new mortgage? Surely if we contact our mortgage company and just swap addresses they would bite our hand off as they will be getting more expensive house as collateral on the mortgage. We already have the mortgage we just want to swap houses with my father in law. Please can anyone help

beecher2

It isn't as simple as you hope, and I doubt that your lender would bite your hand off. If your deal is portable you would have to conform to the lender's present lending criteria and your salary multiples would have to stack up.

cabbage

Hi
you can't just swap houses and take the mortgage with you. You will have to go through the same procedure as buying any other property. The lender will want to ensure the house is worth the money, do a survey and that you have enough income to support the mortgage, whether or not its the same amount as you had before.

I think you might also have to pay stamp duty. You will definitely need a solicitor too.