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Buying/selling at the same time, paying fees, plus other dumb questions
Lois_and_CK
Posts: 584 Forumite
Firstly, I apologise if these questions are stupid. It's been years since I bought the house I live in and I can't remember how it all works, and I've never bought / sold at the same time. I'm still at the 'thinking about it' stage and am just starting looking into what's feasible.
I have a mortgage that is 'portable'. Mortgage is £150k, and three valuations on my house have all come in at £300k (but it's not on market yet, so don't know if this is achievable).
I'm not confident that I would get a mortgage if I applied for one now, so I'd hope that by transferring this portable mortgage and not asking for any extra money from my morgage provider I won't have to reapply - does anyone know if this is right?
So, in theory, say my house sold for £300k and I bought a house for £280k, I'll have a £150k mortgage to transfer plus £150k 'profit'. Then, in theory, I could use £130k of that 'profit' to make up the £280k purchase price along with the transferred mortgage. Then could use the leftover £20k for fees like HIPS, solicitor, estate agent, stamp duty and so on. Does that sound feasible (if a bit simplified)? Or would the mortgage provider want that £29k knocked off the transferred mortgage?
Can fees be paid once the house is sold or does anything absolutely have to be paid upfront?
Have I missed anything out? Or does anyone know of any good information websites, or threads on here they could point me to?
Thank you in advance!
I have a mortgage that is 'portable'. Mortgage is £150k, and three valuations on my house have all come in at £300k (but it's not on market yet, so don't know if this is achievable).
I'm not confident that I would get a mortgage if I applied for one now, so I'd hope that by transferring this portable mortgage and not asking for any extra money from my morgage provider I won't have to reapply - does anyone know if this is right?
So, in theory, say my house sold for £300k and I bought a house for £280k, I'll have a £150k mortgage to transfer plus £150k 'profit'. Then, in theory, I could use £130k of that 'profit' to make up the £280k purchase price along with the transferred mortgage. Then could use the leftover £20k for fees like HIPS, solicitor, estate agent, stamp duty and so on. Does that sound feasible (if a bit simplified)? Or would the mortgage provider want that £29k knocked off the transferred mortgage?
Can fees be paid once the house is sold or does anything absolutely have to be paid upfront?
Have I missed anything out? Or does anyone know of any good information websites, or threads on here they could point me to?
Thank you in advance!
0
Comments
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Your logic seems OK but you will have to apply for the new mortgage, even if it is portable. The lender will want to value the new place and check it meets current lending criteria. They will also credit check you to ensure that you haven't built up a string of bad debts.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Your logic works as far as the money is concerned, but you will have to reapply for a mortgage on the new proeprty and you will probably find that the lender will apply its present income and loan to value criteria.
You need to read the small print of your existing mortgage offer to see the extent of the lender's "Guarantee" of portability. I think you find it isn't as simple as you might have thought.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Lois_and_CK wrote: »Can fees be paid once the house is sold or does anything absolutely have to be paid upfront?
Yes, just about everything can be paid out of the proceeds of the sale (Estate Agents fees, Solicitor's fees, HIPs can sometimes be deferred).
QT0 -
Thank you everyone for your replies. Most useful!0
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