Negative Equity - Trading Down

P

pleb

Guest
hi - I have a question. my bank told me I could sell my house and that my ne c100k would be left outstanding on the original mortgage terms, ie to be repaid in line with the mortgage repayment date or earlier if I want. however they will not give us another mortgage to buy elsewhere,
even though we're downsizing from a mortgage of 500k to a ne mortgage of 100k and a new mortgage of max 250k (ie 350k max borrowings including the ne).
does anybody know if the other banks will consider us for a clean new mortgage ie the 250k bit? does the outstanding unsecured 100k ne stop them from lending to us? cause obviously our repayment capacity is going up considerably and the ne mortgage remains with our current bank.
 
No. You will not get a mortgage from another lender.

They would have to give you a 100% mortgage, and lenders are not doing them anymore.
 
Hi thanks for your reply. Is that the only reason? If we have the equity is 10% to put into a new mortgage would another bank entertain us?
 
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