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Unemployed and looking to reduce mortgage

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  • Unemployed and looking to reduce mortgage

    I currently have a property valued at £240,000. I have an outstanding mortgage currently of £82,000 which means I have a capital of £158,000. I have recently been made unemployed and am looking to move out of area. I have identified a property in another location that would mean reducing my mortgage requirement to £40,000. I wrongly assumed that I could switch my mortgage with my current lender given the fact that I was halfing my mortgage with them to which they said being unemployed they would not be able to support my application. I am not looking for employment until I have relocated. Is there any advice anyone can give me as to how I may be able to obtain the required mortgage?

  • #2
    Re: Unemployed and looking to reduce mortgage

    Maybe use a Guarantor?


    • #3
      Re: Unemployed and looking to reduce mortgage

      Is your income currently zero, or do you have tax credits / benefits coming in that a lender could use? If your income is zero no mortgage lender will provide you with a mortgage no matter how small or low Loan to Value ratio as they wouldn't have a leg to stand on in court if you couldn't pay.

      Is there another person (family member, good friend?) who could join you on a joint mortgage for a period while you settled into work and could then be removed from the mortgage? (be careful with this as they would potentially own half of the house which means half of your invested capital)

      Why not sell up, put the money in the bank, and rent for 6 months in your new location while getting into work and looking for property. Being a no chain buyer will put you in a good position for negotiating on purchasing a property, and you'll get to know the area better so are less likely to make a mistake by buying something unsuitable.
      Property for sale in Torquay



      • #4
        Re: Unemployed and looking to reduce mortgage

        Check again whether you can transfer your mortgage, even if you have to pay a fee. It will be much easier than finding new mortgage