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?

maninthestreet

If I understand you correctly, you want a bank to lend you £160,000 secured against a property worth only £90,000. No bank would do that - if you defauled on the debt and they repossessed the property, £70,000 would still be outstanding.

tdsouza

no,

You keep the full resale value of the property to invest in the new house,
Transfer the original Mortgage amount to the new property.

Then you can afford a better home without anybody losing.

x_Wilco_x

You are counting the same money twice - £70,000 mortgage and the same £70,000 that the bank has invested in the property which is included in the full re-sale value...

If the property is worth £90,000 and you have a mortgage is £70,000 you only have £20,000 equity - whichever way you spin it!

You have 2 posts running with the same thing - I replied earlier to the other one: http://forums.moneysavingexpert.com/showthread.html?t=524769

Can a mod please merge?