Secured loan/Mortgage Query

gemred_21

Hi Everyone,

Myself and my husband have a mortgage of £68,000 and a secured loan of £13,500, we are wanting to move house however the market is very slow where I live, (some houses identical to ours have not sold and have been up for 3 plus years now).

My dad has a house that he rents out and has very kindly said we can swap houses as this would give us the extra room and drive/garage we need. No money would be exchanged as its a straight swap. The house is the same value as ours.

However my parents don't know we have the loan and it would break their hearts if they found out as we already have 15,000 on credit cards.

My question is, would the mortgage company do a straight swap or require the loan to be paid off, which we couldn't do. Or is their another way to transfer the mortgage and loan? Its all so confusing and would appreciate any advice before we get our hopes up.

We both have full time jobs with a combined income of £46,000 compared to £20,000 when we took the mortgage out.

Thank you for reading :-)

Thrugelmir

Why not remortgage for the full amount you need. When purchasing your parents house. As this is what will need to take place to effect the transaction. There's no need for parents to know the extent of your debts.

gemred_21

Thanks mortgage's are so confusing I will definitely look into this, would we require a deposit?

dimbo61

You dont give the value of your current house but you would need to sell that first!
You are for what ever reason living above your income and need to look at all spending MSE style Good Luck

Thrugelmir

gemred_21 wrote: »

Thanks mortgage's are so confusing I will definitely look into this, would we require a deposit?

As its your parents who are the other party, I'm sure that this could be circumnavigated.

gemred_21

Our house was valued at £102,000 and my parents is the same.

We have lived above our means for a very long time and 2.5 years ago realised the problems this has caused us. We got a mortgage when I was at uni and my husband was on a low income. We spent money on stupid things and lived the high life mostly on credit cards. I wish I knew what i know now. I now love MSE it has certainly has helped us lower our spending and pay off a lot of our debts.

gemred_21

Thrugelmir wrote: »

As its your parents who are the other party, I'm sure that this could be circumnavigated.

Thanks I think a call to Northern Rock tomorrow will hopefully help us :-)

gemred_21

Thanks for all your help, I rang the mortgage company and we can transfer the mortgage and loan, its a complicated process as no money is switching hands, with us just swapping our current mortgage to my parents. Its dealt with by the solicitors called an arms length transaction. :-)