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selling house used for collateral
X_Willow_X
Posts: 4 Newbie
in Loans
Hi
Several years ago my son had a £40,000 loan to buy his business and it was secured on my home which I own outright (no mortgage etc)
I would now like to move house and buy something of the same value.
Can the collateral be transferred to the new property . If I have to pay off his loan when I sell my house I will not have enough to buy the new one. And he does not have enough to pay it off himself.
Several years ago my son had a £40,000 loan to buy his business and it was secured on my home which I own outright (no mortgage etc)
I would now like to move house and buy something of the same value.
Can the collateral be transferred to the new property . If I have to pay off his loan when I sell my house I will not have enough to buy the new one. And he does not have enough to pay it off himself.
0
Comments
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whats the outstanding amount on the loan?i assume its not still 40k?
it will have to be repaid on the sale of the house,your solicitor will have to do so before he pays you the balance
the other option might be to take a 40k(or whatever?)mortgage on the new house you are buying might be cheaper than the outstanding loan?0 -
Do the loan companies never just transfer to the new property? I'll still be owning it outright so they'd still have collateral, and they'd still be getting their interest and repayments from my son. I don't think I would get a mortgage for the 40k as I don't have income anymore0
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How much is the loan now?0
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Sorry I just read my original post, I meant to say 40k is what is owing now0
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Speak to the mortgage provider, some place do 'port' the mortgage onto a new property.Some days, it's just not worth chewing through the leather straps....
LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
May grocery challenge £45.61/£1200
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