Bit confused???

kingsthorpe

Hello all,

I have a faxed rate of 5.3% with 15 months to go. I would however like to sell and purchase a new house. How would that work? Would I just extend the amount on my present mortgage? Would the extra I borrow have to be veriable rate or could I get a fixed rate on the new amount?

example..

I have a present mortgage of £45.000. sell you £80.000 to get quick sale. Want a mortgage of £118.000 to buy a house of £157.000.

Thank you all.

Andy

beecher

You need to speak to your lender to find out if you can port your existing mortgage. If you can you could port the £45,000 and get your lender to lend you the additional money. You'd be subject to lending conditions now so your salary/credit would have to be ok.

Alternatively you could pay the Early Repayment Charge and get a new mortgage on the whole amount. Work out how much you'd pay, ask your lender how much your additional lending would be and work out if you would be cheaper going elsewhere.

herbiesjp

As stated above, forst port of call will be your current lender.

See what options they can give you, if any. As due to credit crunch lenders have chnaged criteria, and they may not be able to agree the the whole scenario for you.

If that happens, you would have no option but to leave and find a lender that will, and pay the penlty in the process.

Do you have a good credit history? Who is the lender?

kingsthorpe

I do have a good credit history. no credit card ect...

im with northern rock, ive got a fixed rate with them till july 2010 at 5.39%. I do like northern rock as I am overpaying my mortgage at the mo and I can overpay what even I like so thats good.

Can I ask a really silly question... Whats 'porting my mortgage' mean??

Andy

herbiesjp

Porting your mortgage means transferring your current mortgage deal on the same terms and condition (and figures) as it currently stands.

Any extra borrowing would be on an new deal from the lender.

A phone call to NR will be able to tell you if they can help with the porting and the extra borrowing.

kingsthorpe

oh I see.

Thanks for that info.