Funding the housemove.

bylromarha

Sorry, another silly question, but being a first time seller, I don't know the answer!

Increasing the mortgage when moving, do most people

a) redeem current mortgage (with penalties) and get a whole new one?
b) get a second top up mortgage with a different end date to the current mortgage with

i) current provider?
ii) new provider?

c) pray hard that they win the lottery?
d) anything else I haven't thought of?

We weren't expecting to have another baby (therefore needing to move house) in the next 2 years, but God had different ideas, hence the fact we're in a mortgage deal until Sept 07...and tied into the baby until we die!

robwend

geta second mortgage far cheaper and easier, thats what we have done,

mummytofour

Lol on this occasion we have taken a new morgage with a new provider.. due to current morgage ppl not doing they type of morgage we require. So we are stuck with the 3k in redemption fees as tied in to current morgage for another few months.
We have used money tied up in the current house to pay fees, our fees will be in the 5ish k region.

Doozergirl

If you have a good interest rate at the moment, it might be worth speaking to your current lender and asking if you can move (and increase) the mortgage to the new property. Even if the terms of the mortgage say you can't, they will sometimes agree because they want to keep your business. You win because you don't pay the penalty which can be much bigger than you expect.

Ask your lender for a redemption figure and compare moving your current mortgage to getting a new one (once you've spoken to an independent advisor!) and paying the penalty. You can then work out what might be better value for you.

silvercar

It often works out beter in the long run to stick with your existing lender and increase your mortgage to avoid redemption penalties. The extra mortgage amount can often be taken on whatever mortgage offers are currently available, the current mortgage amount stays on the same deal as now. Lenders often throw in free surveys to encourage you to stay. If you have say 2 years remaining on a fixed deal, try to pick a 2 year deal now then you can remortgage the whole lot in 2 years time.

robwend

it might be worth speaking to your current lender and asking if you can move (and increase) the mortgage to the new property. Even if the terms of the mortgage say you can't, they will sometimes agree because they want to keep your business. You win because you don't pay the penalty which can be much bigger than you expect.

u cannot move and increase a fixed rate mortage,you can "port"<depending on lender> your fixed intrest rate,and you can do a second mortgage to run along side your exsisting one.you cannot increase your current fixed rate mortgage ever with any bank due to the fact it has to be redeemed on exchange, you dont often get penaltys for second mortgages the application fees are usually waiverd due to already having mortgage with them or some may add it to the mortage

bylromarha

I can port, can't increase the lending as fixed. Still have fees etc to pay if we took Abbey's deal.

The only option Abbey have offered is to get a second mortgage with a different end date to the mortgage deal I am currently on. Hence the question, as in my mind this means that most people who move are on 2 different mortgage deals with two different end dates...which just seemed too wierd to be true!

HGLTsuperstar

Yes weird but actually not that uncommon.

Doozergirl

If you took the second mortgage option, I think you can decide the term of your second loan, so you pay it off at the same time as the first. If you still have a long term left, it shouldn't make too much difference to your repayment amounts.

Each time we move our residential mortgage, we reduce the term so we still have more or less the same end date as we started with.