Reduce mortgage or not?

bingobangobongo

I understand what you are saying.

The problem I see it is this: If I reduce my mortgage by say £30,000. Then sell my house for £140,000. I will have £20,000 to use for the next house, plus the other £20,000 I saved.

My mortgage will be £120,000. So I will need to 're-borrow' the £30,000 I paid off, in order to get the house that I want (to make it up to the £190,000).

This reborrowing means a new mortgage deal, and a higher interest rate no doubt.

Does this make sense?

dimbo61

Check again with the Nationwide mortgage centre and ask for the paperwork that says you can PORT your mortgage in writing.
Second put your home on the market and see if it sells while looking for your new home.
Its much more important to sell your existing home than buy a new home ( you can always rent for 6 months ! again check with lender that mortgage can be ported for 6/12 months while you find a new property !! )
Find out all the fees for moving estate agent, solictors,surveys, etc so no nasty surprises !

bingobangobongo

Just had an idea and thought you could help with it.

Since I am wanting to move house, perhaps I could take the £50,000 and buy a new house with it at around £200,000 - using the £50,000 as a deposit. I would of course have to take on a new mortgage.

Then perhaps I could rent out my current house for 2 years+, until such time it was in positive equity again.

Is this a possible solution?

Robert_Sterling_3

You have one house and prices are dropping.
Now you consider getting another house with prices dropping.
Think about it.

silvercar

bingobangobongo wrote: »

Just had an idea and thought you could help with it.

Since I am wanting to move house, perhaps I could take the £50,000 and buy a new house with it at around £200,000 - using the £50,000 as a deposit. I would of course have to take on a new mortgage.

Then perhaps I could rent out my current house for 2 years+, until such time it was in positive equity again.

Is this a possible solution?

Only possible if the rental income on the property being let clearly covers the mortgage payments and your income is sufficient to justify the mortgage you will need on the new place.

You need to ensure that you have enough savings to cover both mortgages should you not have tenants for a while and can afford to maintain two homes.