Mortgage question - little bit complex
10 January 2005, 05:19 PM
#1
Guest
Posts: n/a
Mortgage question - little bit complex
Right, got a good fixed mortgage for the next three or so years, want to keep it. Bank says i can keep the same mortgage even if i move house, they'll switch the mortgage to the new property.
What i want to do is
Sell my place, use the profit/equity from that to buy a new place with a new mortgage. Then buy a small flat as well, hopefully switching the mortgage i have now and want to keep to it. Problem is that mortgage is 105k and the small flat i'll want to buy is about 90k.
What happens there? How would it all work
Or is it not possible....would it only be possible to switch the mortgage to a property of the same or greater value?
What i want to do is
Sell my place, use the profit/equity from that to buy a new place with a new mortgage. Then buy a small flat as well, hopefully switching the mortgage i have now and want to keep to it. Problem is that mortgage is 105k and the small flat i'll want to buy is about 90k.
What happens there? How would it all work
Or is it not possible....would it only be possible to switch the mortgage to a property of the same or greater value?
10 January 2005, 05:25 PM
#2
Scooby Regular
Join Date: Feb 2005
Location: Derbyshire
Posts: 12,304
Likes: 0
Received 0 Likes
on
0 Posts
I think you will find when you move, your current mortgage is paid off and a new one is started, hence why many people change. In your case your current provider are just offering you the same terms on your new mortgage. Ask the mortgage advisor they have assigned you to confirm.
10 January 2005, 05:53 PM
#3
Scooby Regular
Join Date: Oct 2003
Location: New Milton, Hants
Posts: 424
Likes: 0
Received 0 Likes
on
0 Posts
Also look for any partial repayment penalties.
If you moved the mortgage and paid off say £20k at the same time, you may be OK if you don't have to pay penalties. You would not be repaying fully.
If you moved the mortgage and paid off say £20k at the same time, you may be OK if you don't have to pay penalties. You would not be repaying fully.
10 January 2005, 05:58 PM
#4
Guest
Posts: n/a
Yeah thats what i'm unsure of....its a few % penalty for paying it all off before 5 years is up (when fixed rate term ends) so i obviously want to keep it until then.
I'd love to speak to the mortgage people but have the worst cold in the world (well at least in my home town, heck it may even be Man flu
) so can barely manage more than a rough grunt at the moment and i'm poor at explaining things on the phone at the best of times 
I'd love to speak to the mortgage people but have the worst cold in the world (well at least in my home town, heck it may even be Man flu
) so can barely manage more than a rough grunt at the moment and i'm poor at explaining things on the phone at the best of times
10 January 2005, 06:04 PM
#5
Scooby Regular
Join Date: Feb 2002
Location: Nobody knows how to tie the simple knots that I know
Posts: 8,010
Likes: 0
Received 0 Likes
on
0 Posts
We transferred our mortgage from the flat to the house. The way ours worked was we kept the outstanding amount on the flat at the original rate and then we were given a top-up (only way I can think to describe it) to make up the rest for the house at a different rate!
Make sure that you are not tied into another year after the fixed rate period is up. My original mortgage was 5 years fixed but I was still tied in for a year after that I took the hit on the penalty charges and added them to the new one!
Make sure that you are not tied into another year after the fixed rate period is up. My original mortgage was 5 years fixed but I was still tied in for a year after that
I took the hit on the penalty charges and added them to the new one!
10 January 2005, 07:30 PM
#6
Scooby Regular
Join Date: Jun 2004
Posts: 157
Likes: 0
Received 0 Likes
on
0 Posts
i'm pretty sure you can port your current mortgage to another address and release any equity WITHOUT getting any charges. Obviously you lender can give you advise
Have you looked at getting a buy-to-let mortgage, They work slightly differently to a normal home owners one. You can pretty much get a mortgage for any amount as long as you have a 15% deposit the total house/flat price. The rent you then get back each month should be enough to cover your payments. Does that make sense?
Have you looked at getting a buy-to-let mortgage, They work slightly differently to a normal home owners one. You can pretty much get a mortgage for any amount as long as you have a 15% deposit the total house/flat price. The rent you then get back each month should be enough to cover your payments. Does that make sense?
10 January 2005, 08:06 PM
#7
Guest
Posts: n/a
Originally Posted by Pixxie
i'm pretty sure you can port your current mortgage to another address and release any equity WITHOUT getting any charges. Obviously you lender can give you advise
Have you looked at getting a buy-to-let mortgage, They work slightly differently to a normal home owners one. You can pretty much get a mortgage for any amount as long as you have a 15% deposit the total house/flat price. The rent you then get back each month should be enough to cover your payments. Does that make sense?
Have you looked at getting a buy-to-let mortgage, They work slightly differently to a normal home owners one. You can pretty much get a mortgage for any amount as long as you have a 15% deposit the total house/flat price. The rent you then get back each month should be enough to cover your payments. Does that make sense?
I'm not going to be renting out the flat though so dont think a buy-to-let is the right option....
Trending Topics
11 January 2005, 01:55 AM
#8
Scooby Regular
Join Date: Nov 2000
Posts: 26,619
Likes: 0
Received 0 Likes
on
0 Posts
Why not put your existing mortgage on the first new place and take a new mortgage for the flat? This might not be the question you are asking, so how much is current house, current mortgage, new house, new mortgage, new flat, new flat mortgage and fixed rate?
Thread
Thread Starter
Forum
Replies
Last Post