Mortgage and credit rating

Kuampam

Hi. In the light of the hassle from June - getting "the home information pack", and the subsequent hassle of selling the house, I wonder if it makes sense to do the following.

1. Upgrade the mortgage to the value of the house
2. Return the house to the bank.

If it is practical, then you dont need the home information pack, and dont have to go to the broker / solicitors to sell the house.

However, I am not sure if any bank will upgrade to a 100% mortgage when you already have a mortgage.

The last issue is whether your credit rating will be affected if you return the house to the bank - mainly concerned about the new house I should be buying when I move out.

I realise I may not be thinking straight here - just the dread of selling the house. All ideas are welcome. Thanks.

:eek:

JoeK_3

Kuampam wrote: »

Hi. In the light of the hassle from June - getting "the home information pack", and the subsequent hassle of selling the house, I wonder if it makes sense to do the following.

1. Upgrade the mortgage to the value of the house

a) I can only assume that you mean to remortgage your house for 100% of the value

b) There is no advantage to this as a HIP is still required from 1st June 2007

Kuampam wrote: »

2. Return the house to the bank.

Are you saying let the bank repossess the house?

I can only assume that you are experiencing financial difficulties at the moment.

If it is practical, then you dont need the home information pack, and dont have to go to the broker / solicitors to sell the house.

However, I am not sure if any bank will upgrade to a 100% mortgage when you already have a mortgage.

Kuampam wrote: »

The last issue is whether your credit rating will be affected if you return the house to the bank - mainly concerned about the new house I should be buying when I move out.

I realise I may not be thinking straight here - just the dread of selling the house. All ideas are welcome. Thanks.

:eek:

If you just walk away and allow the bank to repossess, then you will have an adverse credit history and all the lenders will have access to a repossession register that will have your name on it.

The first steps that should be taken in the event of financial difficulty is to talk to your lenders a.s.a.p

JoeK

silvercar

so your saying remortgage to 100%, giving you all the money from the house and then go and buy another house. just to avoid the hassle of selling.

Falls down on all fronts. you will not get another mortgage within weeks of having a house repossessed.

you will only have money in your pocket that is the difference between the current mortgage and the full value. not enough to buy another place unless you are downgrading big time.

your credit rating will be stuffed!

Kuampam

Hi. Thanks for the info.

No there are no financial troubles, just the hassle of having to move. A lazy mind busily trying to avoid work.

Back to work now.