Moving house?

dkd1987

I am on a DMP with stepchange, a year in with just under 8 years to go, joint with husband.

Currently own a house worth around 125k with a mortgage of 104k.

For various reasons to do with the neighbours it is a living hell being here. We want to move, and given our credit rating and DMP, we want to downsize to save money.

Our mortgage is "portable" - could we port to a house that's worth less than ours? Lender is Halifax, currently on their SVR.

Ideally buy a house for 100k, keep current mortgage and put the 20-odd thousand profit towards debt?

another_casualty

How much is the dmp?
Don't forget, it costs a few thousand to move.
Don't fall out with the neighbours. You have to declare that you have had no problems with your neighbours , on the form you give back to your solicitor .
I would've thought that you could move with the same mortgage provider you have, as in theory you would have most of the mortgage paid .
If you do move and have less to pay out, I would imagine that you would have to increase your payments to your dmp as they will know what you have. All,IMHO .
Good luck,

Oops! Sorry I forgot the most important thing here ;You don't have much equity .
Moving may be more problematic .
Better advice will come from other posters.

January2015

I don't think you can port a mortgage where you would have a loan to value ratio of 100%. I think the most that would be considered would be 95%.

In that case, you would be buying a house for £100k, retaining £95k mortgage (if lender agress that is).

So from £125k current house value, you would use

£2 - 3k in selling/buying/moving costs (let's be generous and say £2k)

£9k Repayment of part of the mortgage to bring down to 95% LTV

£95k remaining mortage.

Balance left would be approx £125k - £2k - £9k - £95k = £19k

On paper it looks like it could be done, but you would need to talk to your mortgage lender and check costs for selling/buying/moving.