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Moving House Mortgage Query
.NoMoney.
Posts: 182 Forumite
My wife and I have found a new house that we wish to purchase, and I am little unsure on what will happen if we were to proceed with a potential move.
At the moment we have a mortgage with Halifax which has £120,000 outstanding on it. The house we want to buy is on the market for £110,000 it has been reduced from £140,000 for a quick sale due to the owners divorcing. It had a previous offer of £105,000 accepted but fell through due to the buyer being turned down for a mortgage.
So, if we were to purchase the new house for £105,000 (with its valuation potentially being £140,000) would we be required to reimburse Halifax £15,000 (the difference between the purchase price and our mortgage) or will they port over our current mortgage at the value it is because the house is valued at greater than our current mortgage?
Any assistance is appreciated, as don't want to hold false details of the cost of the move and then get bitten if we proceed.
At the moment we have a mortgage with Halifax which has £120,000 outstanding on it. The house we want to buy is on the market for £110,000 it has been reduced from £140,000 for a quick sale due to the owners divorcing. It had a previous offer of £105,000 accepted but fell through due to the buyer being turned down for a mortgage.
So, if we were to purchase the new house for £105,000 (with its valuation potentially being £140,000) would we be required to reimburse Halifax £15,000 (the difference between the purchase price and our mortgage) or will they port over our current mortgage at the value it is because the house is valued at greater than our current mortgage?
Any assistance is appreciated, as don't want to hold false details of the cost of the move and then get bitten if we proceed.
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Comments
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Depends on the product/type/terms & conditions whether they will port at all. Ask Halifax.
What deposit will you put up ? i.e. any equity from your own house sale?
The £140k is a red-herring. What you pay is the value and basis of the mortgage.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
You could not get a mortgage for 105k on a purchase price of 105k. This would be a 100% mortgage.
Lending would be based on the LOWER of the valuation or the purchase price.
Speak to Halifax about it to see what they will offer you.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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