My Choice Homebuy - Transfering the loan to a new home

ChrisSurrey_2

Hi everyone,

First time post so hoping someone out there has some advise on this.

My GF and I brought a property through the mychoice homebuy scheme a while ago and have been happy living there since and love it. Unfortunately property prices in our area are crazy and we could only afford to buy a very small place which we now find very cramped.

Seeing as our earnings haven't really gone up in this time and property prices in our area seem to continually rise the only way that we will be able to move to a bigger place would be to transfer the loan to a new property to act as part of the deposit.

Has anyone got any experience of this or actually been allowed to do this? If its not possible I can't ever see a way that we will be able to move home and start a family.

Please help if you can.

Thanks,
Chris

Thrugelmir

ChrisSurrey wrote: »

Hi everyone,

First time post so hoping someone out there has some advise on this.

My GF and I brought a property through the mychoice homebuy scheme a while ago and have been happy living there since and love it. Unfortunately property prices in our area are crazy and we could only afford to buy a very small place which we now find very cramped.

Seeing as our earnings haven't really gone up in this time and property prices in our area seem to continually rise the only way that we will be able to move to a bigger place would be to transfer the loan to a new property to act as part of the deposit.

Has anyone got any experience of this or actually been allowed to do this? If its not possible I can't ever see a way that we will be able to move home and start a family.

Please help if you can.

Thanks,
Chris

If your earnings haven't increased how do you propose funding a bigger mortgage?

You need to scrimp and save in order to overpay your existing debt , thereby increasing the equity available to you.

beecher2

When you sell up won't you have to repay the equity loan? Look at your documentation, but I found this

If I need to move home, do I have to repay
the loan?
There are certain circumstances where key workers are
allowed to transfer their loan to another property. However,
in general this is not allowed

http://www.thegrid.org.uk/schoolworkforce/recruitment/documents/mychoice_homebuy_faqs.pdf

Do you have savings to make up the difference between your present mortgage, and the one you want?

If not, I suppose like everyone else you need to look at moving to a cheaper area if you want a bigger place, or to up your income. There's no magic bullet I'm afraid.

ChrisSurrey_2

Sorry my earnings haven't increased but my partners have. We brought a property that was £15k below the limit that was suggested by our advisor as well. Paying our existing mortgage and a higher mortgage wouldn't be a problem. The problm in our area is the deposits, to buy a 2 bedroom flat you need around 50K to put down as a deposit which I'm sure not many people have lying around

beecher2

Since you say you have enough money to afford a larger mortgage, start saving or overpaying - if you go onto Debt Free Wannabee, you'll get help in budgeting.