I am in the process of reviewing my financial circumstances; to that end my property is being marketed for sale.
Offers received to date do not cover the outstanding loan amount, being approximately £20,000 less than required
However as I am not asking for additional borrowing, rather I wish to port the mortgage to a property of significantly less value, does the shortfall become less of an issue as I would be reducing the overall loan by half by repaying £160,000.
Current loan £290,000 (including completion fees)
Proposed purchase £130,000
The proposed purchase is for a property that has recently been repossessed and requires a modicum of work, however once completed the property will be worth significantly more & have approximately (£55,000 £65,000)
Can I halve my debt to Northern Rock by repaying £160,000 and port the remaining £130,000?
Or, as the initial LTV was based on an 85% valuation of £335,000 six years ago, would NRAM only lend 85% of £130,000 = £110,500, rather than the whole £130,000.
If this were he case I would be repaying 62% of the original loan, £179,500
Does it really matter that it is £20k short if you are porting the mortgage as it will still have to be paid eventually?
Offers received to date do not cover the outstanding loan amount, being approximately £20,000 less than required
However as I am not asking for additional borrowing, rather I wish to port the mortgage to a property of significantly less value, does the shortfall become less of an issue as I would be reducing the overall loan by half by repaying £160,000.
Current loan £290,000 (including completion fees)
Proposed purchase £130,000
The proposed purchase is for a property that has recently been repossessed and requires a modicum of work, however once completed the property will be worth significantly more & have approximately (£55,000 £65,000)
Can I halve my debt to Northern Rock by repaying £160,000 and port the remaining £130,000?
Or, as the initial LTV was based on an 85% valuation of £335,000 six years ago, would NRAM only lend 85% of £130,000 = £110,500, rather than the whole £130,000.
If this were he case I would be repaying 62% of the original loan, £179,500
Does it really matter that it is £20k short if you are porting the mortgage as it will still have to be paid eventually?
