I owe 95k but buying a new property for £83k please advise

curlyboy

Good evening

Im currently about to sell my property, after fees and everything i make £20k. I still owe £95k and my fix rate of 5.79 runs out december 2013

The house were buying is £83k but needs around £10k of work. We are moving back with my other halfs parents

What happens with my mortgage i owe 95 grand but the new house im buying is 12grand less at 83 grand

Do i pay of the 95k i currently owe and pay the 1.5% exit fee ??

Do the bank refund me the difference ??meaning i owe 95k but the new mortgage is only 83 k

Do i apply for a new mortgage and put down 20% deposit down on 83k for the new mortgage

I would appreciate the advice

shop-to-drop

Curly boy can you reread and edit your post as it is difficult if not impossible to understand. For me anyway!

curlyboy

I will edit give me a few minutes

Thrugelmir

You will need to settle the shortfall on your current mortgage before obtaining a new one.

Selling and buying will involve costs. Also you will need a deposit for the new property.

Why do you want to move? As staying put and paying down your current mortgage may make more financial sense.

Simon_gloster

If depends what you sold for.

On a PP of 83k, you need to put down at least 8300. You cannot borrow anymore.

You could possibly port your current deal, but have to give the lender back the % of charges you are downsizing to ie 2% of 21500 as this is the difference between your old and new loan sizes.

curlyboy

I will deposit 20% on 83k which means i can borrow a bit more ...so pay off the 95k and pay the exit fee and apply for a new mortgage

Were mOving as the new house needs at least 10k of work but once comPleted the house will be worth £120k in the area were i live

CLAPTON

you make no sense...

what is your current house selling for
how much is the mortgage

how much are you paying for the new house
what mortgage are you getting

Simon_gloster

curlyboy wrote: »

I will deposit 20% on 83k which means i can borrow a bit more ...so pay off the 95k and pay the exit fee and apply for a new mortgage

Were mOving as the new house needs at least 10k of work but once comPleted the house will be worth £120k in the area were i live

God its late!!!!

20% deposit....thats fine. If you have the 10k left over after selling costs and deposit, thats all you need to know.

If you haven't, you cant borrow anymore than 90% of the purchase price. Why don't you put down less deposit if it needs work and I have to say 10k work with allegedly no new floor area is la la land. Updating a property may bring 15-20% ontop of what you paid for it.