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buying new house with lower value than current house and using existing mortgage for renovation?
Twin_mum
Posts: 1 Newbie
Hi everyone
I'm new here. Just started marketing our house for sale.
We are hoping to sell for around £575-550k with a mortgage of £260k.
Our lender has said we could port our mortgage to new house or pay early redemption fee of 3% (mortgage deal expires dec 2019).
We are looking to buy a house for around £350k which would need about 100k worth of work, and by adding another bedroom and reconfiguring / renovating throughout hoping to get to £450k min market value.
Could we keep the same £264k mortgage for new house and use some of our profit to do up the house, and then reduce our mortgage with leftover profit?
Ultimately we want a smaller mortgage of around £170-200k but because the new house is only worth £350k before the renovations, we're not sure if we could port our mortgage in this way?
Any general advice welcomed- just looking for advice in principal as realise the specific terms of the mortgage would be dependent on income/ltv etc etc.
Thanks so much!
I'm new here. Just started marketing our house for sale.
We are hoping to sell for around £575-550k with a mortgage of £260k.
Our lender has said we could port our mortgage to new house or pay early redemption fee of 3% (mortgage deal expires dec 2019).
We are looking to buy a house for around £350k which would need about 100k worth of work, and by adding another bedroom and reconfiguring / renovating throughout hoping to get to £450k min market value.
Could we keep the same £264k mortgage for new house and use some of our profit to do up the house, and then reduce our mortgage with leftover profit?
Ultimately we want a smaller mortgage of around £170-200k but because the new house is only worth £350k before the renovations, we're not sure if we could port our mortgage in this way?
Any general advice welcomed- just looking for advice in principal as realise the specific terms of the mortgage would be dependent on income/ltv etc etc.
Thanks so much!
0
Comments
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You will need to speak to the lender, but in theory it should be possible.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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