Skip to main content Skip to footer

Confused. How does part exchanging your house work?

How does part exchange work for a new build? My friend told me that it comes off the existing price of the new build, but I don't understand how it works because I still have a lot to pay on my existing mortgage. So if I was to part ex, does the part ex clear this old mortgage and do I have to get a new mortgage on the new build for the full amount? What she has said is that I could sell mine for example in part ex for 60k when I have a mortgage for 70k, this would be then taken off a new build of 100k leave me with 10k outstanding on the old and 40k on the new. Is that correct it seems too easy. I am really confused.

Asked on Jul 20 2010, General in Hyde | Report content

Answers (1)

Was this question useful? Yes 1 No 0
  • You need to find out from the Mortgage company if they are happy to have 60K paid back to them with you then effectively having a 10K unsecured loan. The easiest way is to transfer your mortgage to the new property. It seems that if the new property is worth 100K and your loan is 70K this is 70% LTV which any lender at the moment would welcome as it protects them if you default on payments or if the property market falls again there will still be equity in the property. Best speak to a financial advisor and your lender before you commit to anything.

    Answered on Jul 21 2010, Report content

Didn't find what you were looking for? Ask a question

More General in Hyde questions on AskMe

See more AskMe Q&A about General