moving home and end of fixed rate question

frowner

Hi,

Prob a really obvious question, but here goes!
Our fixed rate with A&L ends in June and then reverts to their SVR. We have our house for sale and will be taking on a much bigger mortgage (currently 50k looking to increase to 150k).
Is it possible to change lender and secure a mortgage a new property at the same time?

Thanks in advance

_Andy_

Yes you will just apply for a new mortgage on the new home.

frowner

thanks, knew it was obvious but was still not sure!!!

So is it best to go onto A&L svr when our fixed rate ends and then apply for a new mortgage elsewhere when our house is sold etc. Will it be too confusing to change deal on existing mort then to shortly after reapply for a new one?

dimbo61

Just go onto the SVR with A & L and when you sell your home and buy another you can look at the whole mortgage market to find the best deal to suit your needs.
You should see what A & L have to offer you first and then see what else is available.
Dont move until after you existing deal ends and if you are saving money after June ( SVR less than your current rate ! ) Overpay as much as you can afford and save money for mortgage fee £1000.
As you are increasing your mortgage from £50,000 to £150,000 I THINK ! you would be better going for a long term fix to give you security for at least 5 years BUT thats only my opinion. GOOD LUCK

frowner

fab advice. many thanks

ninky_2

frowner wrote: »

Hi,

Our fixed rate with A&L ends in June and then reverts to their SVR. We have our house for sale and will be taking on a much bigger mortgage (currently 50k looking to increase to 150k).

Have you checked with lenders whether any will actually offer you a £150k mortgage. It would be better to check this out and get an agreement in principle before having an offer on your house or seeing your dream property and finding you can't actually get the loan. The mortgage market has changed considerably since you last took out a mortgage.

Also, are you confident with taking on this much extra debt when house prices are falling? Although you will no doubt have a large deposit for your next property from the sale of the current one, you do not want to see the equity in this being eaten up as your new home drops in value. This is very likely to happen at the moment.

frowner

ninky wrote: »

Have you checked with lenders whether any will actually offer you a £150k mortgage. It would be better to check this out and get an agreement in principle before having an offer on your house or seeing your dream property and finding you can't actually get the loan. The mortgage market has changed considerably since you last took out a mortgage.

Also, are you confident with taking on this much extra debt when house prices are falling? Although you will no doubt have a large deposit for your next property from the sale of the current one, you do not want to see the equity in this being eaten up as your new home drops in value. This is very likely to happen at the moment.

Yes, we have checked and we can borrow up to 250k. I know what you are saying about taking on such a big mortgage in these uncertain times. Trouble is we are quite unhappy with the location of our current home and also want to move somewhere bigger to expand the family, trouble is it's quite an expensive area. Thanks

dimbo61

A & L doing 5 year fix at 3.99% max LTV 65% with NO FEE !! so take this into account when looking at next home ( premier account ! )
4.89% 5 year fix if LTV less than 75% fee £299
Long term security for you and your family
and 10% overpayment allowed.

ninky_2

frowner wrote: »

Yes, we have checked and we can borrow up to 250k. I know what you are saying about taking on such a big mortgage in these uncertain times. Trouble is we are quite unhappy with the location of our current home and also want to move somewhere bigger to expand the family, trouble is it's quite an expensive area. Thanks

good luck then!

frowner

dimbo61 wrote: »

A & L doing 5 year fix at 3.99% max LTV 65% with NO FEE !! so take this into account when looking at next home ( premier account ! )
4.89% 5 year fix if LTV less than 75% fee £299
Long term security for you and your family
and 10% overpayment allowed.

Thanks heaps for this info. Does premier account mean I have to have a current account with them? LTV will be less than 65% so this would be fab.

dimbo61

Yes I would say so.
As an existing customer just call in and set it up.
One of the best deals on the market today and only just popped up on there website recently.
5 year fix at less than 4% with no fee !!!!!!