Sorry for the dumb question

natman

Hi there!!!
Sorry for this question- I am normaly quite good with money products particualry saving and deals etc.........................
But I am quite a novice with Mortgages -
Hopefully this can be answered simply by those with greater knowledge and experience than me.

Ok - I took out my 1st Mortgage some time back and to cut a long story short i have 6 years left on it - owe about 26k and have a base rate tracker +0.5% for the life Britannia Building Society ( a good product at the mo - my rate is currently 2.5%)
THIS IS A PORTABLE MORTGAGE

anyhow - I am thinking of moving, so lets just say in theory ( i know with all the house price reductions and credit crunch out there moving wil be difficult, but i am after a general process here)
Lets say in theory i move -

My house was valued at 145K 12 MONTHS BACK, so lets say for arguments I sell it for - £120,000.

Ok - i buy a house for say £180,000 (forget mortgage fees / stamp duty etc etc) i am after just a simple working out.

So i am trying to work out what i do with a new mortgage -
I would like to keep the 0.5% above base rate and get a brand new mortgage amount on the new value - (but i doubt Britannia will let me do this)
which would be - 26,000( existing outstanding mortgage)
- 120,000 sold house for - 180k bought new house
New mortgage 26k(existing) + 34k( new amount req) = 60k

Ok - what my main question is, is this......... I need in total - 60k to buy the house 120k from the sale + 60k = 180k.
Just say i went to another lender for the 34k, How do Britannia transfer the 26k onto the new house at the same time as the new lender?? Is this what normally happens???

Or do i pay off my Britannia Mortgage completely when i complete the sale - and take the full 60k out on a new deal with whoever?? but then how do Britannia get their 26k back, is it at the point of sale?
I think what I am asking is - can you have 2 different mortgage providers on the same house? and how does it all fit together -

I hope you can throw some light on the situation for me...........like i said - i know there are other costs but i am just after a really simplified version of how you move from one house to a more expensive one with a mortgage, and the potential options that are open to me.
Thanks
Thanks

Shazwellyn

natman wrote: »

Hi there!!!
Sorry for this question- I am normaly quite good with money products particualry saving and deals etc.........................
But I am quite a novice with Mortgages -
Hopefully this can be answered simply by those with greater knowledge and experience than me.

Ok - I took out my 1st Mortgage some time back and to cut a long story short i have 6 years left on it - owe about 26k and have a base rate tracker +0.5% for the life Britannia Building Society ( a good product at the mo - my rate is currently 2.5%)
THIS IS A PORTABLE MORTGAGE

anyhow - I am thinking of moving, so lets just say in theory ( i know with all the house price reductions and credit crunch out there moving wil be difficult, but i am after a general process here)
Lets say in theory i move -

My house was valued at 145K 12 MONTHS BACK, so lets say for arguments I sell it for - £120,000.

Ok - i buy a house for say £180,000 (forget mortgage fees / stamp duty etc etc) i am after just a simple working out.

So i am trying to work out what i do with a new mortgage -
I would like to keep the 0.5% above base rate and get a brand new mortgage amount on the new value - (but i doubt Britannia will let me do this)
which would be - 26,000( existing outstanding mortgage)
- 120,000 sold house for - 180k bought new house
New mortgage 26k(existing) + 34k( new amount req) = 60k

Ok - what my main question is, is this......... I need in total - 60k to buy the house 120k from the sale + 60k = 180k.
Just say i went to another lender for the 34k, How do Britannia transfer the 26k onto the new house at the same time as the new lender?? Is this what normally happens???

Or do i pay off my Britannia Mortgage completely when i complete the sale - and take the full 60k out on a new deal with whoever?? but then how do Britannia get their 26k back, is it at the point of sale?
I think what I am asking is - can you have 2 different mortgage providers on the same house? and how does it all fit together -

I hope you can throw some light on the situation for me...........like i said - i know there are other costs but i am just after a really simplified version of how you move from one house to a more expensive one with a mortgage, and the potential options that are open to me.
Thanks
Thanks

This is a portable mortgage, so you can move it to your new house. You will need to get in touch with Britannia for a further advance.. just talk to them! Hope this helps

dwsjarcmcd

You can port as has been said, but they may not offer you the same deal on the increased loan. So you could have £26k on 0.5% above base and the rest on another Britannia product.

As for you other question, you fully redeem the Britannia loan first, then your new lender provides the funds that you need to complete on your new house. You can't have 2 'first charge' lenders on 1 property.

The usual way is to complete on your sale a few days before you complete on your purchase to allow all the various finances to be where they need to be.

David