Mr W

[Gw81972]

We have secured loan with Elderbridge Ltd on our home with 7 years left to pay, never missed a payment and have good credit rating. We have agreed a sale on our house and agreed a mortgage for another property but Elderbrigdge have declined transferring the loan to another property. We hoping to find out more later today but we are gutted. We have agreed to pay off house and nearly all of our debt with the sale of our house. Could the reason for decline be equity?

[atticus]

It could be that, or it could be that they just want you to repay. Can you increase the amount of the new mortgage to take out Elderbridge?

[Pezza54]

Elderbridge have terrible reviews on trustpilot
If you are unable to make any sense from this company (you don't trust their calculations for the outstanding balance or have problems contacting them), make a complaint with the company and if you don't receive a satisfactory response, refer your complaint to the financial ombudsman

[Pezza54]

Usually a mortgage or a secured loan is paid off from the proceeds of the sale of the property.
The remaining funds after paying estate agent and legal fees are used as the deposit for the next property.
When not porting the original mortgage, a new mortgage is taken out on the second property

Somehow you need to pay off the Elderbridge loan including any early redemption charges. The new mortgage company would have preference over Eldridge (second secured loan) should you default on repayments and the property is repossessed

Have you carried out the financial exercise to see how much you are short? Don't forget stamp duty and legal fees for buying the property

If you are unable to borrow more from your new lender, can you raise the money with savings, second secured loan on the property, kind wealthy relative, credit card (expensive to borrow)?

There is also the possibility that the estate agent will reduce their fee (for a no sale no fee agreement) if they become aware that the sale is about to fall through. This is even more likely if a chain of properties will be broken