moving up while losing money

waynestross

Ok I bought my flat back in 2007 for 130k, i put down a 10k deposit so I borrowed 120k.
My 2 yr fixed rate finished in 2009 so im now just on the SVR.
the outstanding ballance is 118k

I want to move house now and i've seen a property for 200k that I like. The problem I think I have is that my current property is only worth about 120k so i could repay the mortgage but essentially loose out on the 10k deposit i put down.

if i just sell the property, pay off the mortgage and buy the new property for 200k I'd need a new mortgage and the deposit to go with it which i dont have.

Can i transfer my existing borrowing of 118k over to a new property and borrow a further 82k therefore maybe only needing to provide a 10% depoit on 82k and not the full 200k?

finaly my current mortgage lender advised me they were reducing there order book and therefore are not lending at the moment so id need to borrow any extra from another bank..... can this be done?

Appreciate any help with this.

Annisele

waynestross wrote: »

Can i transfer my existing borrowing of 118k over to a new property and borrow a further 82k therefore maybe only needing to provide a 10% depoit on 82k and not the full 200k?

No, sorry. From what you say below it sounds as though your existing lender won't allow you to port your mortgage at all. And in any case, if you were to borrow another £82k from a different lender the second lender would have to have a "second charge" on the house (the first lender would have the "first charge") - and in the unlikely event you could find somebody prepared to lend on that basis, the rates would be much higher than you'd get for an ordinary mortgage.

finaly my current mortgage lender advised me they were reducing there order book and therefore are not lending at the moment so id need to borrow any extra from another bank..... can this be done?

Unfortunately not. You can't sell your existing house without repaying the loan on it. So, you'd need to borrow the whole of the new purchase price from a new lender - in other words, you'd need a 100% mortgage, and so far as I know they're not available at the moment.

waynestross

Thank you for the information Annisele it makes sense what your saying and helped me to understand better what my mortgage company was trying to tell me.
Guess I'll just have to do it the hard way and get saving.

Thrugelmir

waynestross wrote: »

I want to move house now and i've seen a property for 200k that I like. The problem I think I have is that my current property is only worth about 120k so i could repay the mortgage but essentially loose out on the 10k deposit i put down.

Don't loose sight of the fact that the property you wish to purchase has dropped £20k.

If you wish to move up the property ladder then make paying down your existing mortgage as a priority. Cut out unneccesary expenditure.