Mortgage Transfer

tdsouza

I bought my first home in Rugby as i couldn't find a place within my budget nr London which was where i live. My plan was to find a job then move in. Its been two years and still no job which means my Rugby home is empty and i'm still living with my Mum. I've now decided to sell but its left me with the same problem in which i still can't afford a house.

I have found out how the mortgage system works when selling your old home and buying a new one. You pay back the Bank and borrow the Money again.
(i borrowed £70,000 + profit £14,000 = £84,000)

I was thinking about my housing problem on the way to Work this morning when it dawned on me that instead of paying the Bank back why couldn't the Mortgage be transfered.
(I borrowed £70,000 + value of the property is £90,000 =£160,000)

Both ways, the same Money is borrowed from the Bank, just one way benefits You more.

Does anyone know of a way to acheve this?

x_Wilco_x

tdsouza wrote: »

I was thinking about my housing problem on the way to Work this morning when it dawned on me that instead of paying the Bank back why couldn't the Mortgage be transfered.
(I borrowed £70,000 + value of the property is £90,000 =£160,000)

I'm am not understanding this well but if you are saying that you could transfer your mortgage and buy a place for £160,000, without the need for anymore money, then I am about to dissapoint!

You can't keep the £70,000 mortgage and the £90,000 property value because when you sell the property you have to give the bank their money back!!! Your money is the £20,000 equity... You should be able to transfer your mortgage to a new house (if meet criteria) but you would need to borrow more to make up the difference. On the figure of £160,000, you would need to borrow an additional £70,000 - giving you a mortgage need of £140,000 and the £20,000 equity (and thats not counting for any costs).

If this is not what you were saying then please clarify?