moving home???

KELY

I'm looking for some helpful advice please. We're looking to move to a slightly bigger house. Our house has been valued at 134995, so looking at what sold on our road, I'd like to think we'd get 130000. We owe £86000 and the house we've spotted is on for £130000 but is empty and I reckon we could get for £127000 ish. We do have debt in form of overdraft of £3000 and loan of £5500 and credit card 0% of £4800 so with profit from house sale I would pay off overdraft and loan and credit card. And put the rest down on house. What would be the likely hood of us being able to get a new mortgage? Or would we be able to stay on same interest rate with Halifax and just move mortgage to other house? Is is difficult to get a mortgage for moving home even though we've had one for 4 years? I'm.abit worried because of our debt and oh has a missed payments from over a year ago for a stupid Internet dongle.

kingstreet

A mortgage cannot be transferred from one property to another.

When you sell, the old one is repaid. If you qualify for a new one with the same lender, you may be able to "port" the rate to the new mortgage.

This can help you keep a good rate, or avoid early repayment penalties.

If you keep back some of your equity to repay your unsecured debts, you will need a bigger mortgage and this will be subject to affordability and income checks as is any new application.

We can't tell you if you are going to be accepted based on the scant information you've provided. Talk to your lender, or appoint an independent broker to find the right lender and product for you.

Thrugelmir

Lenders may well have an aversion to consolidating debt into a bigger mortgage. Ideally you need to address the debts yourselves in order to give potential lenders confidence in your management of your own personal financial affairs. Easy to spend money. Requires far more discipline to pay it back in full.

KELY

Thank you for your replies. Why would we need a bigger mortgage when taking some of the equity. Isn't the money ours from the profit we've made ?

Jhoney_2

In a nutshell, when you sell your property, you will have roughly £45k of profit from the sale (equity).

You then have over 12k of other debt to repay - leaving £33k balance.

You will have to pay the Estate Agents, solicitor out of that for professional costs on the sale. c.28k

You then want to purchase a house c127k - which is at least a £100k mortgage, plus all the associated costs of purchase including stamp duty as you are over the exemption threshold of £125K. Plus repairs, moving costs etc.

That's why you will need more money than the original 86K mortgage.

Hope that helps