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    • Trebor2013
    • By Trebor2013 13th May 18, 2:12 PM
    • 15Posts
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    Trebor2013
    Mortgage helo
    • #1
    • 13th May 18, 2:12 PM
    Mortgage helo 13th May 18 at 2:12 PM
    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.
Page 1
    • amnblog
    • By amnblog 13th May 18, 2:17 PM
    • 10,736 Posts
    • 4,260 Thanks
    amnblog
    • #2
    • 13th May 18, 2:17 PM
    • #2
    • 13th May 18, 2:17 PM
    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.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • Trebor2013
    • By Trebor2013 13th May 18, 2:23 PM
    • 15 Posts
    • 0 Thanks
    Trebor2013
    • #3
    • 13th May 18, 2:23 PM
    • #3
    • 13th May 18, 2:23 PM
    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.
    Originally posted by amnblog
    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?
    Last edited by Trebor2013; 13-05-2018 at 2:26 PM.
    • amnblog
    • By amnblog 13th May 18, 2:47 PM
    • 10,736 Posts
    • 4,260 Thanks
    amnblog
    • #4
    • 13th May 18, 2:47 PM
    • #4
    • 13th May 18, 2:47 PM
    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.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • sh856531
    • By sh856531 13th May 18, 2:49 PM
    • 400 Posts
    • 160 Thanks
    sh856531
    • #5
    • 13th May 18, 2:49 PM
    • #5
    • 13th May 18, 2:49 PM
    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?
    Originally posted by Trebor2013
    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
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