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Moving Home - Paying off outstanding loan with new mortgage?

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samo8076
samo8076 Posts: 205 Forumite
Tenth Anniversary 100 Posts Combo Breaker
in Mortgages & endowments
Hi,

My house is just about to go on the market, and I have been in touch with the bank to see how much I can borrow.

I have an outstanding loan with the Natwast (£6000 ish), and was wondering would I be able to add this amount to my new mortgage when I purchase my new property? Therfore paying off the Natwest?

Thanks

Comments

  • kingstreet
    kingstreet Posts: 39,258 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Pay it off from the equity in the property at completion.

    As a result you'll need a bigger mortgage and that will be subject to criteria, loan to value and affordability.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • samo8076
    samo8076 Posts: 205 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    Thanks. The equity in the property is going to be needed to cover my deposit and all fees, so really there wont be any left to pay off the loan
  • kingstreet
    kingstreet Posts: 39,258 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    In which case, you will not be able to repay it.

    The maximum loan to value is 95%, so you'll need 5% deposit with or without the loan being repaid.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • samo8076
    samo8076 Posts: 205 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    If I could get a 95% mortgage then I could possibly pay the loan off, but it does descrease how much I can borrow by quite a bit.
  • pjread
    pjread Posts: 1,106 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    samo8076 wrote: »
    If I could get a 95% mortgage then I could possibly pay the loan off, but it does descrease how much I can borrow by quite a bit.
    Probably increases the rate on presumably a much larger loan too if you're talking 95LTV, so may well cost you more even if you can do it...
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