anyone have any knowledge on this please?

[pinkfluffo]

Me and my partner have had a mortgage since June last year. We got a mortgage based on our joint income at the time of about �26000.
Since November last year we have only had one income as we had a baby and so only have one wage which is now about �21000.
We are looking to move but not to anywhere more expensive, either the same value or cheaper than what we have now. We have a fixed rate and ive read in the mortgage contract that we can keep the fixed rate if we move home.
My question is when you move house do you have to do a whole new mortgage application? Because if so then we wouldnt be able to get a mortgage on out total income now but can afford the monthly payments so what could we do? Or can you just transfer the mortgage to the new address and carry on paying the same amount? ( if the house value is the same) or just a bit less if the new house is cheaper? Not quite sure how it works because we can afford our monthly payments fine but on paper if we were to move then our total income isnt enough? Whats the deal if you are just moving house and not wanting to borrow anymore than you already pay?
Sorry if it makes no sense i have emailed our mortgage company but they are yet to get back to us so would appreciate it if anyone has any knowledge. Thankyou very much.

[Ethel]

What was the value to loan ratio?

You can't move to a �100k house if you have �120k mortgage, for example.

[pinkfluffo]

the house was �125000. We have the mortgage on �119000 so the LTV was 95% i think. We payed about �6250 deposit.
I dont understand what you mean why couldnt we move to a cheaper place?

[Ethel]

If you don't sell your house for enough to pay off the difference, the mortgage company would not like you to have a mortgage for �119,000 on a �100,000.

That would be negative equity.

[pinkfluffo]

ok i see what you mean. We are planning to sell this place and wouldnt buy anywhere that costs more than what we sell this for. it would be either the same or less. Just dont understand how the mortgage side works. So if we sold current one for �130,000 we would only look for one for �130,000 or less. We are hoping its worth more than what we paid for it last year.

[Ethel]

The value of houses has fallen sharply in the last 12 months, so that is doubtful unless you got yours too cheap when you bought it.

All mortgage companies have different conditions. Phone yours and ask the procedure, then get three estate agents in to value your home.

Good luck

[pinkfluffo]

we bought it cheap as it was a repossesion. Do estate agents charge to value your home? And what if we decide we dont want to put it on the market, will they charge? thanks for the help.

[Uzoma]

An estate agent can value the property for you but if you tell them up front that you won't be selling it with them, they won't be that keen (hint, hint!). A lender will require a new application from you because they will need it to perform the valuation which will confirm the value of the property. In my experience (I've worked for an estate agent and a bank), sometimes the estate agent's valuation can be up to 10% more than what a bank valuer would value the house at. However, if you buy the property via an estate agent, they ought to ensure that they have comparable properties that have already been sold for a similar price. In these current conditions, it may be hard for the estate agent to prove.