Want to sell and move - advice in current climate

B

Bangle

Guest
Please forgive my ignorance on this..

I bought 2 years ago and wish to sell my house and buy a bigger one (growing family), thus increasing my mortgage. If my current house is not worth what I bought it for, how does it work? I have a 100% mortgage - do I have to pay back the deficit and get a whole new mortgage, or can I transfer my existing mortgage to another property of higher value? I am in a position where I am able to pay higher repayments.

Thanks.
 
The up side is the bigger house will also have fallen in value probably by alot more than your starter house.
 
The downside is that you may lose an attractive tracker rate, if you're on one, and you'll be paying stamp duty.

If you have potential to extend it's worth considering
 
Bangle said:
Please forgive my ignorance on this..

I bought 2 years ago and wish to sell my house and buy a bigger one (growing family), thus increasing my mortgage. If my current house is not worth what I bought it for, how does it work? I have a 100% mortgage - do I have to pay back the deficit and get a whole new mortgage, or can I transfer my existing mortgage to another property of higher value? I am in a position where I am able to pay higher repayments.

Thanks.
Click to expand...

If you bought 2 years ago you probably are at least 25 % in negative equity.
I cant see any bank allowing you to discharge the mortgage unless you can get the money together for the balance .You would then have to get at least a 10% deposit for your new property as there are no 100% mortgages now.
You are going to be waiting a long time till prices get back to the level you paid.
In the UK when they had a price crash in the late '80's it was the mid '90's before prices got back to the 'pre crash' level.
 
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