I want new mortgage but moving in a year

yoshimi_2

Hi all, 2 years ago I bought a house on my own, I had no savings and a CC of about 5k - rather than wait to pay off the debt and save a deposit (which would take forever) I got a deal with Northern Rock where I got a 115% mortgage. I've been more than happy with this as I was able to buy the house, pay the CC off and do the repairs that the house needed as flagged up by the surveyor.

However, that was 2 years ago and the deal I had then has just run out and interest has increased to 5.99%. I've now got about 40k equity in the house and want to move to a better mortgage deal, but I'm also planning on buying a new, more expensive house with my girlfriend in a year (or less).

Question is, do I stick paying over the odds until I get the new house or is it possible to get a new mortgage now and not be tied to it for the next 2 years (which all the deals seem to be)?

cheers
danny

Ian_W

Hi danny,
If you've got £40K equity in the house and the earnings to support a new mortgage providing you can leave without a penalty there are low fee, no tie-in mortgages out there you could switch to that may save you money.
However, just re-read your post and NR do have a habit of giving a special deal for a period but having a longer tie-in. So can you leave w/o penalty?

herbiesjp

Indeed as Ian wisely says - have a word with NR first to see if you can leave without any penalties or payi9ng back any incentives they may have given you.

Then you can indeed look around for lower fee free deals, with no penalties for leaving at any time, and with low closing fees if possible.

Again your circumstances would need to fit the criteria of any lender to get the mortgage agreed i.e. income sufficient etc etc

MortgageMamma

Hi There

If you can leave NR with no or minimal penalties then it may be worth your while remortgaging onto a tracker deal with no early repayment charges, that way when you choose to move you will be free to do so with minimal costs, and you may, if you are happy with the deal be able to take it to your new property (your mortgage will need a portability option for this, ask your advisor). There is currently a lifetime tracker with no early repayment charges whatsoever just 0.19% abovethe bank of england base rate. Depending upon your income multiples etc etc that could be a good deal for you.

As ever, contact a whole of market mortgage broker for specific advise

HTH and GL

Lisa

yoshimi_2

cheers people - I'm pretty sure that there are no redemption penalties, but I will check. I reckon I've got a good credit history and with my salary I should have no probs getting a mortgage anywhere - time to source a broker.

again thankyou all:T

MortgageMamma

you are very welcome, good luck, and remember, make sure you are totally comfortable with your broker and that they do not charge fee's. Then if you think the level of advice/customer service is poor, you are free to ditch them and find a better one.