Existing homeowner looking to buy a new home

soulbinder

Hi,

Apologies if this question has been asked before BUT
I am existing homeowner with a mortgage I am looking to sell (expecting to make a loss due to negative equity) & purchase a new home on a mortgage of course. I want to know hwat are my options? If I sell the house I know the price wont cover the full mortgage so what happens to the remaining amount? can i transfer that amount onto a new mortgage? I am not sure how this all works - help is apppreciated. Thanks

beecher2

You'd have to come to an agreement with your present lender about how to pay the shortfall, and would need at least 10% deposit for your new house.

soulbinder

to purchase the new house what sort of a mortgage would I apply for - remortgage?

beecher2

soulbinder wrote: »

to purchase the new house what sort of a mortgage would I apply for - remortgage?

No, if it wasn't for the negative equity you could port and use your existing equity as a deposit. Because of the negative equity you'd have to pay off the shortfall, plus the equivalent amount of deposit, and then your lender may or may not allow you to port the rest. If you don't have the amount needed saved up, you may have to change your plans.

SouthCoast

From National Debtline:

Factsheet | Negative Equity - what can I do if I want to move?


http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=07_negative_equity

Crinz

certain lenders now offer negative equity mortgage products for people in your situation.

who is your current mortgage with?