help!!!!!

sansavaria

I am really really stuck and need some advice.

Hubby and I bought our house in March 2009 for 100,000.

We had a 10% vendor gifted deposit (which I know no longer exist now lol) and added the usual fees to the mortgage. So basically we had a mortgage for 90k plus the arrangement fees which I think were 1k.

It's a 5 yr fixed deal at 7.49% and is fully portable.

We renovated the property and now want to move to something bigger. But here is where we are stuck.

1) Our mortgage owing is around 89k. So what happens if I sell my house and buy another one for say 65k?

2) We're with Halifax - is there any way they'd let us break our 5 yr fixed deal to go on one of their better deals?

3) If I get a new mortgage, will I need to show proof of employment? ie. wage slips?

4) Halifax want 4k to end our mortgage deal early. If I pay this and get a new mortgage, do I need to show wage slips? And in the meantime does this mean I am adding to the mortgage term?

Our home has 2 mine entries within the boundaries of the property. Wasn't a problem for halifax, but the estate agent now says we need to get a coal inference report before we can sell. This is in addition to the buyer's coal searches, and is a report simply stating whether or not the mines will be a problem. Isn't this the responsibility of the buyer?

poppy10_2

First off, that 7.49% five year fix with a £4,000 early repayment charge sounds like an awful deal - the broker who arranged that one for you should be ashamed of himself. The BoE rate in March 2009 was only 0.5%, you are paying almost 700 basis points over this.

Secondly, with a 10% fake 'gifted' deposit, the true value of your house was probably only £90,000 when you bought it, and despite your renovations is likely to be around the same now. Thus you are close to 100% loan to value, and will find it hard to get anyone else to give you a mortgage on the property, even if you were happy to waste £4k on paying off the ERC to Halifax.

Looks like you are indeed stuck, unless you can sell the house for £4k more than you paid for it.

CloudCuckooLand

1) Can you get £89k for it? If not, may struggle to remortgage, without deposit. Its fully portable, so port it. Worry about remortgage later, when porting juggle has replaced your LTV/equity thru the £65k purchase.
2) Not usually to get their SVR. Perhaps to switch deal, if you agree to pay early repayment charges...
3) Yes.
4) Yes. "In the meantime"? - you pay the mortgage now, keep paying it??

Coal mines - better to reassure a potential buyer with facts at hand, than assume they will be interested enough to pay for their own report. After all, you need to know how bad it is, or not, to know you are safe in the meantime...and to counter any cheeky offers without the facts.

Yes, you might argue its the buyer's responsibility for extra reports, but that subject is the sort that might put off buyers altogether...

Thrugelmir

Certainly consider overpaying your mortgage. As you won't obtain a guaranteed net rate of 7.49% on your savings.

With the expense of moving on top of the ERC's. May be better to stay put for a while.