Need to move, but no equity or deposit

Jvic28

Hi everyone,

I am currently living in a one bedroom flat with a 2 year old and would like to buy something closer to family.

However, I have an interest only mortage and have no equity.

If I were to perform a minor miracle and manage to sell my flat and break even what are the chances that my current mortgage company would allow me to transfer the mortgage to a property elsewhere. I don't want to borrow anymore.

I owe about £81,000 on this mortgage and would be looking to spend the same on another property.

Thanks

Meeper

Depends on the company. Was your initial mortgage 100%? Was it portable? Would you want to borrow any more than your current £81,000? Is it possible for people on this board to be specific instead of generalist? Do you know that the devil's in the detail?

Jvic28

I didn't want to go into too much details to begin with as I wasn't sure exactly what would be required or if anyone would even reply. Is it possible for people on this board to not have tiny little digs and just give a worried single mum some advice?

I wouldn't want to borrow anymore than I currently owe. The mortgage is portable according to my paperwork and yes it was 100% (well 100% of my share as it's a shared equity property).

Thanks

opinions4u

Ask the mortgage company. Most won't have such a scheme and will need at least 10% to 15% in personal deposit.

Why haven't you been saving or reducing the capital? Start now.

(Just noticed the reference to DMP In your signature line. I suspect you've got no chance of a new mortgage. Consider selling up and renting).

chopper78

Generally speaking, you have two chances - Fat and Slim. If you have no equity or deposit, and you can sell for what you owe on the mortgage, then you'll continue to have no deposit. There are no 100% mortgages out there. There are "some" 95% mortgages out there and the banks who do have those products are very picky over who they'll offer them to, but you still need that 5% (plus estate agent fees, plus solicitor's fees) before you can buy.

Sell. Then rent for less than your current mortgage interest repayments, and save.

Jvic28

As you can see by my signature I'm currently on a debt management plan and the budget does not allow for saving. Things are very tight at the moment as I'm recently single, but a move closer to family would certainly help things financially.

I have written a letter to the mortgage company enquiring which will be sent on Monday. Just wondered if anyone had any experience with this sort of a situation.

I thought maybe as it's no EXTRA risk to the mortgage company it wouldn't be a problem.

chopper78

Hang on, I just spotted you have a load of debt and a debt management plan. I'm not convinced you would be able to get a mortgage at all. In fact, it sounds like you probably couldn't even afford the estate agent fees and legal fees to sell up.

Jvic28

If I am unable to do what I hoped that's what I'll have to do. I was hoping as it was already 100% mortgage and I would just be moving it to a different property it would be a different matter.

If I rent I expect the most I'll be able to save every month towards a deposit is about £100. OMG I think I'll just resign myself to renting forever.

Jvic28

I know my credit is poor and that if I went out to get a mortgage now it would be impossible. I just hoped I would be able to "move" my existing mortgage to a different property.

Jvic28

I should be able to avoid estate agent fees altogether and I'm 99.9% sure I could get the solicitors fees on a sort of long term loan (ir to be repaid whenever I can) basis from someone.

opinions4u

Jvic28 wrote: »

As you can see by my signature I'm currently on a debt management plan and the budget does not allow for saving. Things are very tight at the moment as I'm recently single, but a move closer to family would certainly help things financially.

DMP = trashed credit file = no new mortgage.

I have written a letter to the mortgage company enquiring which will be sent on Monday. Just wondered if anyone had any experience with this sort of a situation.

Don't write. Ring. Most companies get confused with the written word and struggle with replies.

I thought maybe as it's no EXTRA risk to the mortgage company it wouldn't be a problem.

Moving home changes the risk. It moves it to a different property. While the numbers may look the same the lender really wants rid of you. They won't want to shift the risk elsewhere.

Honest answer: you're stuffed.