Part Exchange New Build

lufc1979

We are looking at part exchanging our house for a new build home but does any money change hands at all if we have equity in our current property. We have been offered an AIP by a bank but its based on us paying some credit cards off with the equity, would the housing developer give any cash?? The banks AIP is based on the full price of the property but we don't want the hassle of privately selling?

eddddy

lufc1979 wrote: »

...would the housing developer give any cash??

The developer doesn't give you money, it would be the mortgage lender that gives you (i.e. lends you) money.

It sounds like you're saying that, after taking the part-ex into account, the mortgage loan will be more than you need to buy the new house. So your solicitor will pay the surplus money into your bank account after completion.



(It sounds like your plan is to move to a more expensive house with a bigger [more expensive] mortgage.

Have you run up the credit card debt alongside your current mortgage? if so, it suggests you're spending more than you're earning. If that's the case, it may not be a good idea to take on an even bigger mortgage.)

lufc1979

eddddy wrote: »

The developer doesn't give you money, it would be the mortgage lender that gives you (i.e. lends you) money.

It sounds like you're saying that, after taking the part-ex into account, the mortgage loan will be more than you need to buy the new house. So your solicitor will pay the surplus money into your bank account after completion.



(It sounds like your plan is to move to a more expensive house with a bigger [more expensive] mortgage.

Have you run up the credit card debt alongside your current mortgage? if so, it suggests you're spending more than you're earning. If that's the case, it may not be a good idea to take on an even bigger mortgage.)

We have roughly 75k equity in property and are wanting to pay the deposit out of it then the other debts and start a clean slate and would be far better off even with the new mortgage

PasturesNew

You can't do a trade in on a downsize. Developers only do part exchange where your house is worth less than the one they're selling.

You will always be the one giving them money. They don't care where that money's from, or whether you've loans or mortgages, they just want the difference.

lufc1979

PasturesNew wrote: »

You can't do a trade in on a downsize. Developers only do part exchange where your house is worth less than the one they're selling.

You will always be the one giving them money. They don't care where that money's from, or whether you've loans or mortgages, they just want the difference.

we are upscaling to a bigger more expensive property. The 10% deposit is coming out of the equity they know that