I've been a user of these forums in the past and found them very useful, so I am hoping someone can provide some words of wisdom on our situation before we approach the bank.
Some background:
PPOR LVR around 50%
IP1 LVR over 100%
IP2 LVR around 50%
My husband and I are looking to sell our PPOR this year to upgrade to a bigger home (and more expensive mortgage)...
When we bought our PPOR, we x-coll IP1 and drew down some of the equity as a deposit for the PPOR..hence the very high LVR as the value of the property then decreased.
Now that we want to sell, we are unsure if the best thing to do would be approach the bank (ANZ) and ask them to x-coll since we have a low LVR for our PPOR. We would be willing to transfer some funds on to IP1 mortgage to reduce the LVR if this may be a concern for the bank. We just don't want to find ourselves being forced to pay down IP1 with the profits of our PPOR sale, as we want to use this for our new PPOR...hence why we want to untangle ourselves beforehand.
IP2 is also with ANZ however, this mortgage was with a different lender and we brought it across a couple of years after PPOR and IP1.
The main question is- could there be barriers to us un x-coll the two mortgages? Would ANZ come to the party easily, or would we need to perhaps consider refinancing? We really want to resolve this matter in the early half of this year and start looking for a new home in the second half.
All mortgages are variable interest rates..our PPOR/IP1 mortgages will have been with ANZ 5 years in June.
Some background:
PPOR LVR around 50%
IP1 LVR over 100%
IP2 LVR around 50%
My husband and I are looking to sell our PPOR this year to upgrade to a bigger home (and more expensive mortgage)...
When we bought our PPOR, we x-coll IP1 and drew down some of the equity as a deposit for the PPOR..hence the very high LVR as the value of the property then decreased.
Now that we want to sell, we are unsure if the best thing to do would be approach the bank (ANZ) and ask them to x-coll since we have a low LVR for our PPOR. We would be willing to transfer some funds on to IP1 mortgage to reduce the LVR if this may be a concern for the bank. We just don't want to find ourselves being forced to pay down IP1 with the profits of our PPOR sale, as we want to use this for our new PPOR...hence why we want to untangle ourselves beforehand.
IP2 is also with ANZ however, this mortgage was with a different lender and we brought it across a couple of years after PPOR and IP1.
The main question is- could there be barriers to us un x-coll the two mortgages? Would ANZ come to the party easily, or would we need to perhaps consider refinancing? We really want to resolve this matter in the early half of this year and start looking for a new home in the second half.
All mortgages are variable interest rates..our PPOR/IP1 mortgages will have been with ANZ 5 years in June.