Refused mortgage on part-exchange

Vanessa_sedg

We had arrears which the Halifax took us to court over 2 and half years ago, they refused to change us to interest only and agreed to us adding arrerars to mortgage whilst we tried to sell the house. We have had first real offer if we take smaller house as part exchange but Halifax are refusing to offer a new mortgage on the part ex, effectively stopping us selling the large house we cannot afford. Any suggestions please because I'm at a loss now. We stuck to our end of the deal and have paid £1140 every month without fail. Thanks

Dave_Ham

Hi - I think this is a bit naughty of them - few questions

Forgetting the background do you want to downgrade to a lower value property?
How much of the 1140 is the mortgage payment and how much arrears?
What term do you have remaining and how old is the oldest of you now
What is the mortgage value and approx. property valuation.

With this information, will be able to give better opinion but will help you as much as pos as hate these bullying tactics to push you to sell your home...

Thrugelmir

Dave_Ham wrote: »

Hi - I think this is a bit naughty of them

Why? There's no automatic right to be offered a mortgage.

Vanessa_sedg

Hi we pay £900 mtg and £240 arrears we have been offered £230k for our house with part ex of £140k we owe approx £170 on mortgage with 18 yrs remaining. We asked if we could have new mortgage for a few years until early repayment charge was reduced again then sell it to clear the lot. Any advice would help so we can sell the house, it's hard enough selling large house at the moment so we don't want to lose the sale.

Thrugelmir

Sell and rent a property for a while.

The fact you have incurred mortgage arrears will be a black mark on your credit profile to mainstream lenders.

Vanessa_sedg

We want to sell but only offer in 2 years is if we take the part ex believe me if we could be rid of the house we would! It heartbreaking

GMS

Obviously you want the sale to go through in the interest of all parties.

Halifax are not obliged to 'port' your mortgage even if for a reduced balance. Any new application needs to meet current criteria.

Have a chat with a broker. May be that you have to arrange a mortgage elsewhere to purchase the new property. If you can do at least you are free from the seemingly troublesome mortgage you have even if you need a lender away from Halifax for the new home.

Dave_Ham

Right back on thread.

Reason I said it was a bit naughty (take you point about no obligation to offer) is because I would imagine Halifax had given some solutions to the OP which may have included reducing their interest and risk - which a lower mortgage would.

I still need to ask a couple of questions:

• When you agreed the arrears payment, did they capitlise this and form part of the mortgage at court or are they still showing as arrears (albeit reducing arrears)
• Is the £1140 reasonable to keep paying, if not how much and do you absolutely want to move or just Halifax pushing you?
• How old is the eldest of you? Only relevant if you are still on a repayment mortgage
• Are you motivated to sell/part exchange based upon other debts that you want to clear up?
• Is £230k "market value" or are you selling cheaper based upon desire to sell

Just trying to gather some additional information, as it is easy to come on and say sell-rent-share whatever but without fuller information think it is unwise to give try and give an informed opinion and we are talking about your home/life!