What choices do i have? im moving up the ladder and on a fixed deal

Essex_Lee_

Hello, im currently on a fixed deal with the Halifax that ends in July and im looking to move up the housing ladder in the next month or so, I need to borrow another 60k.

Could I port my current mortgage to the new house and remortgage and pay more money until July when it will go onto the variable and then come down?

Or port the mortgage to the new house and borrow the extra 60k on a separate mortgage from the Halifax, therefore having 2 running at the same time.
Would I be able to get the smaller mortgage on variable so when the fixed ends in July I have 2 variables running and then I can remortgage the whole new house in 6 months or so.
or would the only fix the smaller mortgage?

I want to keep my current mortgage because when it goes onto the variable it will save me money from what it is now.

Hope that makes sense.

Thanks

nickmack

Essex_Lee_ wrote: »

Hope that makes sense.

You need to check your agreement to see if your mortgage is portable.

Usually, you can't go straight onto the SVR with a new mortgage, as with most lenders, it's not a product as such.

What's your current borrowing/LTV? If your extra loan is going to push your LTV >75%, think very carefully about staying on SVR, as it's likely property values will continue to fall and this could mean you struggle to find a fixed/tracker deal when the SVR goes back up.

AntiLochus

Essex_Lee_ wrote: »

Hello, im currently on a fixed deal with the Halifax that ends in July and im looking to move up the housing ladder in the next month or so, I need to borrow another 60k.

Could I port my current mortgage to the new house and remortgage and pay more money until July when it will go onto the variable and then come down?

Or port the mortgage to the new house and borrow the extra 60k on a separate mortgage from the Halifax, therefore having 2 running at the same time.
Would I be able to get the smaller mortgage on variable so when the fixed ends in July I have 2 variables running and then I can remortgage the whole new house in 6 months or so.
or would the only fix the smaller mortgage?

I want to keep my current mortgage because when it goes onto the variable it will save me money from what it is now.

Hope that makes sense.

Thanks

Phone the Halifax, they are the only people who can tell you what your options are.

We are in the same situation and to be honest Halifax were not particularly helpful - so we are simply taking a new mortgage out with a new provider and redeeming the Halifax one (even though we pay an ERC). We did not want two separate mortgages running.

You can't take a new mortgage on the standard variable rate - it is simply not an option with the Halifax (and I would assume most other providers).

So phone the Halifax and see what they say - then work out whether you would be better off redeeming the mortgage and taking a new product with another provider. There are some great fixed rate deals out there at the moment........

Essex_Lee_

we want to buy a house of £250k and put 40k down maybe a bit more.

i know i can port the mortgage, if i did this can the halifax just add the extra money i am borrowing to my current mortgage and pay more until july when the fixed ends ? (i dont know if this is even possible)

my plan was to let it go on SVR until we can get 20% of the value then go onto fixed, so it would be 5 months or so.


i am ringing the Halifax tonight, just want to get a few ideas before i ring.

Thanks

JayZed

Lee, I'm pretty sure that any new borrowing on the new house will count as a new mortgage, so you'll have to take a "product" for that borrowing and will not be able to drop to the SVR on that borrowing until the term of the new product has expired.

That shouldn't affect your existing loan, though - if you can port that to the new property then you should be able to drop onto the SVR when your current term ends. So you'd then have two concurrent mortgages, one on the SVR and the other on a fixed or tracker deal.

I'm not a mortgage adviser, so I may be wrong about the above, but that's my understanding of how it normally works.

dimbo61

Simple dont move until after july !!
Have you found a house ?
Have you sold your existing home ?
Wait/delay the house sale until you are on the Halifax SVR and then find the best deal on the market to suit your needs.
DO NOT pay the ERC when its now March and you want to move in July.
Get a new mortgage for the whole amount you need on the new property when you move GOOD LUCK

Comyface

JayZed wrote: »

Lee, I'm pretty sure that any new borrowing on the new house will count as a new mortgage, so you'll have to take a "product" for that borrowing and will not be able to drop to the SVR on that borrowing until the term of the new product has expired.

That shouldn't affect your existing loan, though - if you can port that to the new property then you should be able to drop onto the SVR when your current term ends. So you'd then have two concurrent mortgages, one on the SVR and the other on a fixed or tracker deal.

I'm not a mortgage adviser, so I may be wrong about the above, but that's my understanding of how it normally works.

Yes, that's pretty much how it works (I do work for the Halifax).

You could port your existing rate to your new mortgage and take a product (fixed or tracker) for the additional amount you need. You would then have two products on your mortgage, one which finishes in July and one which finishes later (when it finishes depends on the product). After July, you would just have one product on your mortgage and the rest on SVR. You'd still have ERCs on the remaining product, though until the end of its term.

upbeat_2

Help....how do I use this site. I'm trying to post a message asking for opinions re fixed rate mortgages and just can't find where I do this. Sorry for tagging onto your message for this.