Property News · May 26, 2016

My house has negative equity, can I sell it and switch to a new mortgage?


The value of my house is less than my mortgage, what should I do if I want to sell the house and move the shortfall over to a new mortgage?Q I want to sell my terraced house. It is valued at £45,000 but my mortgage is over £65,000 so if I sold my house would I be able to carry the amount over to a new mortgage? What is the best way to go forward? I have talked to mortgage advisers but don’t seem to get anywhere and feel like I’m stuck. CSA Because your house is worth less than your mortgage – and so you are in negative equity – you can’t sell it without your lender’s permission. But it is worth talking to your lender as it may be one of those which will allow you to carry the shortfall to a new mortgage. There will be conditions. For example, Nationwide says that if you are an existing Nationwide borrower in negative equity who wants to move home, your application for a new mortgage will be considered. However, you’ll be eligible only if you need to move – because you’ve got a new job elsewhere in the country, for example – you are in permanent employment and you can afford the new borrowing. Even if you are eligible, Nationwide says that you won’t be allowed to move to a new build property or shared ownership or shared equity property and take your mortgage with you. In addition, you will need to have enough cash to put down a deposit on the new home. Continue reading…

Source : theguardian.com
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