buying a relatives house its less than what I owe on my mortage

curlyboy

Morning

Im selling my House I owe £95,250 on it at 5.89% APR this runs out in Dec

We are buying a house for £85,000 and taking the mortgage with me

Do I still have to put a deposit down as it less than what I currently owe ?? im with the halifax

I dont want to put a desposit down because I have more money to do it up

Thanks

HappyMJ

curlyboy wrote: »

Morning

Im selling my House I owe £95,250 on it at 5.89% APR this runs out in Dec

We are buying a house for £85,000 and taking the mortgage with me

Do I still have to put a deposit down as it less than what I currently owe ?? im with the halifax

I dont want to put a desposit down because I have more money to do it up

Thanks

You need to do this a different way. Offer the relative more money and then get them to gift you the deposit. i.e Offer £95,000...they give you £10,000 in cash which you can then use as a deposit. They still get £85,000 and their £10,000 cash back and your LVR ratio should be the same as your current house....of course the house has to actually be worth £95,000.

curlyboy

im getting £106,00 for my house if we dont do the gift thing do we still have to put a deposit down

ValHaller

curlyboy wrote: »

im getting £106,000 for my house if we dont do the gift thing do we still have to put a deposit down

You will be unlikely to borrow more than 90% of the value of the property - perhaps 95% if you are lucky. You should budget for a deposit of £8,500, legal fees of £2000 and EA fees of £1500 for yours - £12,000 total.

Given that you are selling for £106,000 and owe £95,250, you will walk away from you other house with £10,750 which will leave you £1,250 to find.

HappyMJ

curlyboy wrote: »

im getting £106,00 for my house if we dont do the gift thing do we still have to put a deposit down

Yes the house is worth what you pay for it or lower if the valuer says it's worth less than your offer. The valuer will never value it higher than your offer.

kingstreet

You aren't transferring a mortgage. You are paying off the old one and taking out a new one. The rate from the old one may be "ported" to the new on to avoid the payment of early redemption penalties. Check the lender will accept a family purchase at undervalue, some don't.

Yorkie1

kingstreet wrote: »

You aren't transferring a mortgage. You are paying off the old one and taking out a new one. The rate from the old one may be "ported" to the new on to avoid the payment of early redemption penalties. Check the lender will accept a family purchase at undervalue, some don't.

Given that the new mortgage will be less in value than the one being paid off, might there be an ERC on the difference between the two - is this something the OP should check?

kingstreet

Yes. I'm rammed today, so am guilty of not reading thoroughly.

Partial penalty payable on amount by which amount of old mortgage exceeds new one.

Thanks, you big chunky chocolatey hero, you!

Yorkie1

On the strength of that, I might just have one of those dark chocolate digestive biscuits that have been looking at me from the sofa for the last hour or two ...

kingstreet

I've just finished a bag of Haribo "Pinballs" as they are highly addictive. I'll be hyper for hours now!