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Together mortgage advise needed
BOBBYMC321
Posts: 3 Newbie
Hi I was just wondering if any one could help me. I bought a flat a 5/6 years ago and got a together mortgage to buy it from northern rock, £80,000 altogether, £70,000 was the mortgage and £10,000 was a loan. I currently want to set up home with my partner now and the flat is only worth £65,000. I've looked at my mortgage statement and it says I owe just under £65,000 on the mortgage and just over £7000 on the loan, so £67,000 altogether. Can I sell the flat for £65,000 and carry the loan on to my next property, I'm not sure if I'm in negative equity or not. Any help on these together mortgages would be much appreciated . Thanks
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Comments
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You will need to clear the main amount when you sell, or the lender will not allow you to sell. So if you accept an offer less than £65K, you'll need to add your own savings to clear the mortgage.
I believe you can carry forward the loan but expect the interest rate to go up significantly as it's no longer linked to the mortgage.0 -
65 plus 7 is 72k.
How much deposit do you have?0 -
Sorry yes 72. I have £10,000 saved up but need that as a deposit.0
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Unless your lender will allow you to port the £7000 loan unsecured, you might as well pay the loan off and start saving for a deposit.BOBBYMC321 wrote: »Sorry yes 72. I have £10,000 saved up but need that as a deposit.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
Assuming you do manage to sell the place for enough to redeem the mortgage (and I would suggest you make damn sure this is actually likely before starting process), you could then have the loan element as unsecured, but as stated above, the interest rate would go up dramatically, as of course would your payment.
Have you factored in the cost of solicitors fees for the sale/purchase, moving cost, valuation fees etc.?0 -
Yes I have considered that, my partner has the solicitors and so on covered. Thanks for the help everyone, think I'm just going to have to see what my lender says about the loan part.0
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BOBBYMC321 wrote: »Yes I have considered that, my partner has the solicitors and so on covered. Thanks for the help everyone, think I'm just going to have to see what my lender says about the loan part.
can you let out the flat? if you can cover the mortgage (interest) payments with the rental income you could be sitting pretty0
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