Borrowing a little extra?

JohnR21

I'm after a little advice please?

Here's the situation, currently my house is on the market and in the meantime my wife and I having been putting money aside to save for a deposit on our next house. My house is currently worth what i paid for it 5 years ago, which is bonus of sorts, meaning i won't be out of pocket hopefully, but also i don't have an equity in the property.

We where planning on moving back in with my in-laws for the rest of 2011 to put more of a deposit aside and then look toward Xmas/New Year.

Anyway my question... We've seen a property in an area we're keen to move to, it's £70,000 cheaper than the average price on the estate as the house needs a little work. Would I be able to stick with my current deal which runs out in October and borrow the extra funds needed to buy this house from my provider?

Or does it not work like that?

I went to speak to them a year ago and they said that you need a minimum of 10% deposit, but would that be to secure a new deal, can I modify my existing one?

dimbo61

You may well be able to port your existing deal and borrow the extra ( at a different rate/deal) PROVIDED that you met the lenders terms!
Now if your current deal was 80% LTV when you bought the house and you put down a 20% deposit you may not get a 90% deal now so save like mad and talk to your lender

beecher2

You need a 10% deposit no matter what and if you're at 100% LTV at the moment, porting and borrowing more would be impossible I'm afraid.

JohnR21

Hmm, that's cleared that up then. When I bought my house on my own in 2005, I took out a 100% interest only mortgage with Coventry BS. Things have changed since then and I'm now with Halifax on a repayment mortgage but for the same amount.

Thrugelmir

Is your savings earning a higher rate of interest than you are paying on the mortgage?