# New Mortgage



## scando (Mar 8, 2011)

Hi

Just after some friendly advice/information

Basically I moved in with the girlfriend who has her own property. She bought it about 5 years ago when prices where high so obviously the price has dropped now. Purchased for £115000 and she has a mortgage for £105000 and house is now worth between 90K and 100K. We have seen a house that we both like for £170000 that we wish to buy as a joint couple. 

So the question I have are

Can we just "extend" her current mortgage to cover the difference or do we need to submit a new mortgage application etc.

Would it be best to add me to the current mortgage first and then apply for the increase or when ever you move house do you need to sort a new mortgage 

Thanks Guys


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## mattsbmw (Jul 20, 2008)

you will need to apply for a new mortgage.


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## robertdon777 (Nov 3, 2005)

I think you may need to pay the bank/building society off first to pay off the first mortgage and then take out a second.

So you will need about £5-10K to pay off the first and then a deposit of 15% for the new house: £25500

Sometimes they run 2 mortgages side by side though aswell, but with the first having neg equity I think you will need to pay off the mortgage first.

If the other wasn't in negative equity the first mortgage would be for £105000 and they would run a second mortage for £65,000 assuming your first house sold for £105K or more. They usually arrange the 2 mortgage deals to finish on the same time so that when you need to apply for a new deal you can just do it with one mortgage.


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## scando (Mar 8, 2011)

Hi Guys

Thanks for the info. . off to look down the side of the sofa for a space 25K


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## robertdon777 (Nov 3, 2005)

scando said:


> Hi Guys
> 
> Thanks for the info. . off to look down the side of the sofa for a space 25K


That's the pain in the backside for many at the moment, the banks (who we bailed out) are not playing ball by offering low interest for 95% mortgages.

The system at present isn't working for first time buyers or first time movers (ie. second house)

I know someone very close to me that earns more than 3 times what I do, but because of the decrease in value of their first home means they cannot afford to move out even though they could repay the payments 2-fold.

They would basically need nearly 80K in cash to buy a 250K house. Their wages should see them in a 500K house if the market hadn't of dipped so much.

The Government need to step in a force the banks to offer these low rates at 95% LTV. The banks will argue it's too much of a risk incase the property values drop again but it's funny how they love taking "Risks" when the values are rising:wall:

They win either way, we bail them out if they are in trouble, we bail them out when the goings are good.


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## OvlovMike (Jul 19, 2011)

I'm actually with the banks on this one - it's their fault we're in this mess but only so far as they agreed to let people live this 'want it now' culture. If your mate can afford £500k worth of house with minimal deposit, £500-£1000 a month shouldn't be difficult to put away and what it means is people aren't going to be so able to fall into negative equity.

Sensible choice in my books. **** ain't a right, tell your parents you're working at moving out, stop spending fortunes on cars and booze and take the step properly, once.


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## J55TTC (Apr 11, 2008)

I'd talk to the bank, many mortgages are portable these days. The only issue I see is that the original mortgage is in her name only. Perhaps it's possible to port her mortgage across and pick up the balance in a second mortgage. Not quite a 50/50 split but your solicitor can advise on this. 

I've moved onto a bigger house 3 times now and have ported the deal across every time. Instead of having 1 mortgage I have 3 at different rates. Works out nicely as 2 are on tracker and 1 fixed so get the best of both worlds.


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## robertdon777 (Nov 3, 2005)

OvlovMike said:


> I'm actually with the banks on this one - it's their fault we're in this mess but only so far as they agreed to let people live this 'want it now' culture. If your mate can afford £500k worth of house with minimal deposit, £500-£1000 a month shouldn't be difficult to put away and what it means is people aren't going to be so able to fall into negative equity.
> 
> Sensible choice in my books. **** ain't a right, tell your parents you're working at moving out, stop spending fortunes on cars and booze and take the step properly, once.


They have moved out and don't spunk money on booze and cars. The point I was trying to put across is that in the given situation if he had the same job etc. 20 years ago he would of been able to purchase a huge house (which people in his type of job did) without any issues but because of the banks safeguarding themselves the average worker will find it very hard to purchase the average house.

The averages have swung massively towards the banks, I can see that in the term i've had my houses (13 years). They love taking risks when the markets are good for them, but when it starts to go **** up we bail them out.

The Banker never loses... my dear old nan used to tell me this when I was a nipper playing cards with her! she wasn't far wrong.

Oh and they do put more than £500-£1000 a month away but work out how long they would need to save to put the deposit down if they saved £500 a month (remember no interest on that!) = 13 years! jesus he would be nearly at pension age.. (they get good retirement age and pension - unlike me ...68 boooo)


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