Moving house mortgage questions

cmssbrie

Hi All,

We have never moved home before so please accept my apology for the probably stupid questions!

Here's our story....

We are currently on an NRAM Together mortgage and owe £56,000 on the secured loan and £10,000 on the unsecured loan. Initial terms of our loans were: 30 years on both (I think). We currently pay nearly double the required amount each month (payment of £850), and should pay the whole lot off in around 7 - 8 years - saving around 15 years on the initial terms.

Our house is probably worth around £75,000, and our annual income is around £45,000.

We now are wanting to move home. We have barely any savings, but would be able to stump up £1000 - £2000 in terms of fees if needed.

We have seen houses we like around the £150,000 mark that we could comfortably afford (i.e they are roughly the same monthly amount that we are paying each month now according to several mortgage calculators).

I know the best bet would be to go to an independent adviser, but I just wondered what happens with a new mortgage? - i.e:

1) Does the new lender (I don't believe NRAM are offering mortgages anymore) basically take over the existing mortgage and put us on a new one with their terms / new amount?
or
2) Does the sale of the house mean that we simply pay NRAM the settlement figure on the secured loan (+ unsecured loan if we don't want to keep that separate), close up shop with them and take any surpless as a deposit with the new lender?
3) Does the (hopefully) £10K (or £20K assuming we kept the unsecured loan with NRAM) count as a deposit with a new lender - before we sell the house?
4) Where do we start in terms of getting the ball rolling - contact NRAM first or go to a broker first?
5) We were on a DMP up until 2012, but all defaults / adverse accounts have now come off our credit files - would we need to go to an adverse credit broker - or would any suffice now?

I do appreciate that these are 'stupidville' questions, but as always would appreciate any advice!

Thanks as always!