Remortgage query

katchambers

Hi,

I have a question...

Is it possibly to move house without remortgaging?

I have a mortgage with....Northern Rock!! I am on a DMP and am sure that when my fixed rate ends my payments are going to shoot up dramatically. Since I am on a DMP my credit is completely shot now as we have defaults so there is no way we can remortgage.

However, if we move into a cheaper house it might offset the difference.

I am fairly certain it is not possible but just wanted to check.

Thanks in advance
Kat x x

sarkin

Sell your house port mortgage to new house, money left over pay back to NR. If you are on DMP still worth shopping around as NR are only offering SVR at the mo. Best check with your lender that you can port the mortgage then off you go.

UK007BullDog

NO, first of all you check your paperwork to see if you can port. HOWEVER as you are on DMP there is no way that they will agree to anything at all.

If you buy a cheaper property the lender expects you to pay back any money if the mortgage is higher than the value of the new property.

How much equity do you have on your property? What is the mortgage amount and the property value?

Alternatively, rent a place which might be cheaper and sell your property and clear all your debts.

katchambers

We did the together mortgage so it means there is a £30k loan on top of the mortgage. Therefore I am fairly certain, especially with lower house prices, that we have no equity within the house. We haven't been on the DMP very long and so far Northern Rock haven't done anything about it so we might be able to do something if we do it soon. Also, if we did move that means they would get their money back and since they want to pay back the bank of england quickly and get rid of all their mortgages (which they said it a letter they sent us) I was hoping they might be open to us downgrading a little.

Any thoughts?

P.s I will check my paperwork to see if it is portable.