Taking a loss on my House.

marcjones84

Hi all,

Myself and my wife are looking at selling our current house and buying a new property. We enough cash for a deposit etc.

The problem is, When we bought our first house 4 years ago we went on a 2 yr fixed intrest only, with us being first time buyers etc. Then after the fix term ended, with the rates being so low we decided to stay where we are and enjoy the extra case. We had spent 4 years saving to move in and to pay for our Wedding, so it was nice have some cash for a change.

Anyways, No we face the reality of selling our house and losing a few grand, my questions is.....how would that work with our existing lender. Would we continue to pay them the difference or would we need our new mortgage to cover what we owe them and the new house purchase.

Thanks.
Marc

Rafter

Marc,

The current mortgage would be repaid out of the sales proceeds. If you are in negative equity, you would need to pay the difference out of your savings.

Do you still have enough deposit to get the new property, and are you sure after stamp duty and other costs, a lender will give you a high enough loan to value loan on the new place?

Good luck

R.

kingstreet

At completion of the sale, your solicitor would ask you to pay them the difference, plus their fees and any other costs, such as the estate agency fees.

If the solicitor is also completing a purchase for you, you'll be asked for your deposit and the other solicitor's cost and fees at the same time.

marcjones84

Ye thought that would be the case. Cheers guys.

We are in negative equity, so we will have to pay the difference it seems. Hopefully should be no more than 5k. Cheers guys.

dimbo61

So you have the £5K to clear the NE but have you got the 10/15% deposit for the new property plus the fees,stamp duty,legals,searches, ETC ?