Can our mortgage company keep us ‘trapped’ like this?

kingstreet

If your expected sale price is £340,000 and your existing mortgage £263,000 your loan to value is currently 77%. You divide the mortgage amount by the property price/value.

If you purchase a new property and plan to only put down 10% deposit by using most of your equity for debt repayment; that's a 90% mortgage, which any lender would view as being of higher risk than the status quo.

ACG

eleanorl89 said:

So will they work the LTV value on what we purchased with, or look at what we sell it on for as the current LTV ratio - when taking this into consideration for the new property I mean keeping it at a 15% LTV ratio on the new one & hopefully not 77% due to whay we sell for. Hope that makes sense!

They will base it on the purchase price of the new property. The LTV is nothing to do with the property you are selling. 

ReadySteadyPop

Hoenir said:

eleanorl89 said:

Our mortgage company are saying this is ‘unaffordable’ as obviously my personal circumstances have changed, my Husbands however haven’t. They won’t look at taking me off the mortgage either

There's the crux of the matter. Financially you are joined at the hip. You cannot simply walk away. Your creditors have considerable legal protection under the Insolvency Acts. Pay a visit to the Debt Free Wannabe board.  You'll receive advice there on how to tackle your financial issues head on in the best manner.  

Good advice.