Mortgage helo

Trebor2013 · 13 May 2018 at 2:12PM

My partner and I are coming up to our 5th year of paying off a 30 year mortgage. We!!!8217;ve never missed a payment, but I have recently defaulted on a credit card (December 2017). Im currently in an agreement with Tesco and I!!!8217;ve kept up with repayments, with no expectation of falling behind.

Question 1) - what is he general viewpoint from mortgage lenders when it comes to moving house if you have kept up with mortgage repayments as expected, but defaulted with another lender?

We are considering moving house in the next year or so. Based on the research done by ourselves, not an official estimation, the value of our of house has potentially increased from £190k to £240k. For the questions below, let say we get £240k:

Question 2) - should we be interested in a house for LESS than our sale price of £240k, let!!!8217;s say £220k, how does a potential new mortgage work or would we just use the extra equity from the house sale and retain the existing mortgage?

Question 3) - if we find a house for £240k - would we potentially still keep our existing mortgage and the extra equity from the house sale just be used to pay off the difference?

Apologies if not explained or questioned very well.

amnblog · 13 May 2018 at 2:17PM

1) A default is a problem and will exclude some lenders from your options, including probably your current lender.

2) The equity from your sale is available for the deposit on your new purchase. You do not retain the existing mortgage. You decide if you pay more or less for the new property.

3) You do not move your existing mortgage to a new property. You pay off the existing and arrange a new mortgage on the new property.

Trebor2013 · 13 May 2018 at 2:23PM

amnblog wrote: »

1) A default is a problem and will exclude some lenders from your options, including probably your current lender.

2) The equity from your sale is available for the deposit on your new purchase. You do not retain the existing mortgage. You decide if you pay more or less for the new property.

3) You do not move your existing mortgage to a new property. You pay off the existing and arrange a new mortgage on the new property.

1) What you!!!8217;re saying is potentially, even though Halifax are our current lenders, because of my default they may not lend with us again? Should I contact our broker?

2) So our mortgage is £120k and our house value is £240k. What equity would be available for us to put down as a deposit?

3) So when it says about transferring a mortgage onto a new property, what is meant by that?

amnblog · 13 May 2018 at 2:47PM

1) Yes, you now have a problem using Halifax again. Check with a Broker

2) Equity is sale priceless current lending secured on the property.

3) You do not, and cannot transfer the Mortgage, you can transfer the product with some lenders.

sh856531 · 13 May 2018 at 2:49PM

Trebor2013 wrote: »

1) What you!!!8217;re saying is potentially, even though Halifax are our current lenders, because of my default they may not lend with us again? Should I contact our broker?

2) So our mortgage is £120k and our house value is £240k. What equity would be available for us to put down as a deposit?

3) So when it says about transferring a mortgage onto a new property, what is meant by that?

2) If you get 240K for your house, and have to pay back 120K, this will leave you with £120K in cash. This becomes your deposit for your next house - minus any fees and what not

Mortgage helo

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