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laurenelizabeth
Posts: 1 Newbie
Hello,
I need some impartial advice please.
My partner and I have found a house that we would like to make an offer on. We have a current mortgage with 2 years left on the 5 year fixed rate.
My partner spoke to Nationwide about how we would go about getting the extra we need to purchase a new, more expensive house. The mortgage advisor at Nationwide said that we would need to take out an additional £X against our current mortgage at the current rate, meaning we would be paying an extra £200 on top of what we currently pay.
However, if we were to pay the early repayment fee, and take out a new mortgage (with practically any provider), we would be paying the same or less than we pay currently due the drop in interest rate. Despite the fee, we would be better off. Is this an option, or am I looking at it the wrong way?
What is the best way to go about buying a new, more expensive house whilst still in the fixed term of a mortgage deal? Is it possible? Is early repayment and a new mortgage the best way? Can we re-mortgage?
Thanks in advance for your help
I need some impartial advice please.
My partner and I have found a house that we would like to make an offer on. We have a current mortgage with 2 years left on the 5 year fixed rate.
My partner spoke to Nationwide about how we would go about getting the extra we need to purchase a new, more expensive house. The mortgage advisor at Nationwide said that we would need to take out an additional £X against our current mortgage at the current rate, meaning we would be paying an extra £200 on top of what we currently pay.
However, if we were to pay the early repayment fee, and take out a new mortgage (with practically any provider), we would be paying the same or less than we pay currently due the drop in interest rate. Despite the fee, we would be better off. Is this an option, or am I looking at it the wrong way?
What is the best way to go about buying a new, more expensive house whilst still in the fixed term of a mortgage deal? Is it possible? Is early repayment and a new mortgage the best way? Can we re-mortgage?
Thanks in advance for your help
0
Comments
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laurenelizabeth wrote: »Is this an option, or am I looking at it the wrong way?
You seem to be looking at it the right way - assuming you have done all your sums correctly.
You can either port your current Nationwide mortgage terms - and top it up with new borrowing on whatever terms Nationwide offer you....
Or you can pay off the Nationwide mortgage (including the early redemption fees) and take out a new mortgage with another lender for the whole bigger amount.
As well as comparing monthly payments, you also need to compare the one-off fees for each approach. (Application fees etc)0
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