Can I remortgage when house for sale?

Julesyeha

Hi there,
Our house has been on the market for about 7 months. I have reached the end of my "tie in period" with my Mortgage company and wondered if I can still switch to another company with the house being up for sale?

poppysarah

You can. You have done lots of research about moving mortgage, fees and that sort of thing though haven't you?
If you've left it to the last minute you might find yourself struggling to find an alternative. But it might also cause a valuation on your house if you change mortgage (After all they wouldn't want to lend you more than it was worth or anywhere close to that)
so you might find the answer is decided for you.

Have you tried reducing the price of your house yet?

Julesyeha

Thanks Sarah,
I had it on the market but took it off to remortgage, as thats what my financial advisor said to do. Yes I have weighed up the pro's and cons and thought we may aswell be paying less until we sell it (I plan on putting it back on the market again when we have remortgaged)

Julesyeha

Is it a standard thing that any mortgage company will take you on when its for sale? or does it depend on the company?

mlz1413

If you are hoping to move would it not be better to be on variable rate with no tie in's whilst you are trying to sell? Have you checked what the variable rate will be when your fixed rate ends, many are very reasonable now with all the base rate cuts made by bank of england.

I think if you re-mortgage is it only against that house, so you would have to ensure the new mortgage was portable (ie you can take to another house) but then you will have all the valuation and survey fees again and the chance that the mortgage company might say no.

Many companies allow porting but unless exchange and completion are on the same day they take the % redemption from your sale and then refund it by cheque after you have purchased again.

jamief

Who is your current mortgage with?

I would think that once your fixed term expires you'll drop onto the SVR rate, which just now is cheaper than a lot of fixed rates.

Certainly for me, when my fixed term ends next month, I'll drop from 5.39% to about 4%. Plus, when you switch you'll have fees to pay. Why not drop the price of your house if it isn't selling?

Richard_Webster

OP needs to tell us what her present lender's standard variable rate is. All the admin/survey/application/legal fees involved in remortgaging would mount up so the monthly saving on a new mortgage would have to be pretty amazing to make it worth it, perhaps only for a few months.