Northern Rock query

ErIndoorz

Hi all

I have an existing IO mortgage with NR.
I am desperate to sell where I am now and buy somewhere else but have no or very little equity (as far as I know) in my property.

Does anyone know if I can keep the mortgage I have now and transfer it to the new place? The new place is actually less than my outstanding balance.

I really don't know how it all works so any advice would be a great help.

Thanks

kingstreet

Unlikely in the current climate.

Some offers have portability built into them, but this is simply a means of keeping your interest rate on some, or all, of your next mortgage.

It doesn't confer a right to a mortgage from that lender. You will be expected to satisfy all the lending criteria at the time, including credit scoring, income and the size of the mortgage in relation to the value of the property.

Unfortunately, you'll either have to try to save a deposit, or make capital repayments to reduce what you owe.

Sorry. Probably not what you want to hear.

shy2011

It may be possible dependent upon figures. Are you with Nortern Rock or NRAM? Your best bet would be whats called a LTV swap or a Balance swap. Basically you wont be able to increase your current lending or Loan to Value but may be able to pick up what you have and take it to your new property. Say for instance your current mortgage is 95k and your house is worth 100k your ltv would be 95% so basically the max borrowing on the new house would be 95% of the purchase price but no more borrowing than 95k. Hope this makes sense. If you had any figures i may be able to help