activity and have decided we have to move out, does anyone know what the procedures are with the mortgage, does it just tranfer over, or do we have to put a new application through? We don't have fantastic credit rating due to last year so am worried.
2007-06-10 20:26:14 · 7 answers · asked by uk_blondie1 1 in Business & Finance ➔ Credit
you will have to remortgage as you are buying a completely new property. What we did was contacted our existing bank explained we needed to move (I would make up an excuse if you are not comfortable with telling them about the crime increase, such as closer to schools or easier to get to work etc.....may not get asked but it always helps to get your answers sorted first), our bank then closed down that mortgage when we completed and we got a new mortgage. The house insurance needs to be adjusted too. Your credit shouldn't affect your applying to them if you have kept up easily with the payments!!??!! There are new rules in place I believe that mean you have to put together a 'pack' for any new purchases and I think you may have to disclose any neighbour problems....but if I were you check that with the CAB! It may just be you have to disclose if you have had problems personally with them....not the fact that they are known to the police etc.....best to check. The transfer of a mortgage is easy. You will need a solicitor to arrange the exchange of contracts and do the survey and all the other stuff you did when you bought your current house. If you are using a NEW mortgage company to take advantage of the lower rates or better terms you will find that just as easy as applying to your current bank/building society.
Regarding your bad credit rating and getting a mortgage.....
Adverse Credit Mortgage UK
Adverse Credit is a term generally associated with those who have a poor credit history.They may have mortgage arrears or ccjs, others may have be bankrupt or have IVAs or face house repossession.If someone has adverse credit then most lenders will charge a higher rate than that of customers who have had no problems with bad credit ratings or defaults. The amount of these higher rates is related to the terms and conditions of which these are set to the extent of the adverse credit history of the client.
Please don't worry yourself into not moving....we have been in your situation and in a very DIRE situation and still managed to move on. You can turn things around for yourself you just have to be brave and remember.....keep paying your mortgage, even if it is at a reduced rate and you are legally entitled to stay in your house.....also remember that no one is going to shoot you if you for having a bad financial year!! I've had 13 years of juggling finances and scraping through....and we are still here!! Try also to remember that Lenders love people in debt as it is their bread and butter.
Check the links below. Especially the second one for help understanding mortgages and also terms and ways of paying.
2007-06-10 20:29:44 · answer #1 · answered by Confuzzled 6 · 0⤊ 0⤋
You will need to have a new mortgage and the other one will be paid up from the proceeds of the house sale. You are not in a good position anyway as under the terms of selling a property you must inform prospective buyers about the problems you have with the neighbours. If you do not, when the problems eventually come to light the new owners can come back at you for a refund of part of the sale price.
2007-06-10 20:42:40 · answer #2 · answered by ANF 7 · 0⤊ 0⤋
You probably wont be able to buy a second property if you have had financial difficulties recently. Certain mortgages can be transferred to another property - but this mean selling the current house and moving any equity forward into your new property.
You may be better off complaining to your local authority, police, newspaper & so on to try to stop your problem neighbour. Also, you could spend a little money on investing in protecting your property, such as an alarm, or security fencing. These might be cheaper than moving in the long run.
2007-06-10 20:34:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Talk to your Mortgage company.
MOST will allow you to Transfer over to a new property HOWEVER depending on the Mortgage type (for example, '3 year fixed') it MAY of of a type where they can demand a 'Early Redemption' penalty charge.
In this case, you need to ASK them to allow you a penalty free transfer - if they won't agree, there is no point in sticking with them - if you then tell them you are moving the mortgage to another company and there is a good chance they will agree to penalty free transfer after all.
2007-06-10 20:47:51 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
Please remember that you have to sign a legally binding declaration when you move house, stating that you do not have any problems with your neighbours!, although it is tough on you it would be unfair to lumber new people with the problem,
2007-06-10 20:40:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
no it doesn't transfer and get about selling the property you live in first
2007-06-10 20:56:30 · answer #6 · answered by srracvuee 7 · 0⤊ 0⤋
Are you serious? you dont know? has anyone on this site got a braincell????
You have to sell your house before you can do anything. Duh
2007-06-10 20:31:20 · answer #7 · answered by Anonymous · 0⤊ 7⤋