Help moving home!

emmagater

We are currently in a 2 bed home and have a 95% mortgage through Natwest that is fixed for 10 years (9 years left) As we have recently had our 2nd child, we're getting a big cramped and need to move up the ladder a bit. We have got a 5% deposit and moving costs but the 5% equity that should be in the house seems to be dwindling. We initially looked at new builds, presuming that if we could wangle a good deal from the developer, that we could get the deposit paid etc. However, having just spoken to Natwest, they tell me I need 20% deposit for a new build and that a developer's gifted deposit doesn't count.

Also, although our mortgage is advertised as 'portable' we can't just move it to a new house as I thought and simply borrow the extra, we have to effectively re apply and the best LTV we could get now is 90%.

Therefore, in order for us to move, we need to have moving costs, the extra 5% deposit and the extra deposit we need to up size. That equates to about £25,000 on a £200,000 house. And if we wanted a new build, that'd be more like £45,000!

We simply don't have that sort of money and, with 2 young kids, haven't much chance of saving it anytime soon. We could move lenders as, apparently Santander will lend 90% on a new build but that would mean stumping up the ERC on our Natwest mortgage which would be around £6,000. And I don't know if Santander will accept a gifted deposit either.

Can anyone offer any advice? I know the sensible thing would be to sit tight and save but we are in a small 2 bed and simply can't wait what would be years to move!

Thanks

kingstreet

I'm sorry. You seem to have looked at every angle and I can't see any other moving option.

Do you have any room to extend?

beecher2

Saving up a deposit is your only real option I'm afraid, unless moving to a cheaper area or renting are options. Or is an extension/loft conversion an option?

GMS

Santander 90% new build is for First Time Buyers only which you are not. 80% for non FTB.

Portable mortgages can be moved subject to meeting criteria at the time, not just a case of switching it across.

Looks like you may need to sit tight for a while.

emmagater

Unfortunately we can't extend the house or go into the loft so we're pretty much stuck. I was hoping there was some clever way of doing things with bridging loans or something similar that I wasn't aware of but looks like we'll be staying here a while longer then. Bit irritating and quite a few people I know are in HA or council and have bigger houses than we do!