Moving house with mortgage tie-in

Loobysaver

A friend of mine and her OH have the oportunity to buy a relative's house at a knock-down price.

She is 1 year into a 3 year tie-in on her mortgage. She previously had bad credit so this was the only mortgage she could get at the time with cash back to do home improvements.

Her question is if she stays with the same mortgage company will she avoid paying the penalties? Or is there a better way of doing this. How much are the penalties likely to be anyway - is it 2 years interest or similar?

Thanks

MortgageMamma

she would have to check a copy of her mortgage offer, most mortgages are portable meaning they can be transferred between properties, there's usually a small cost for doing this. If she can't find the offer tell her to phone the mortgage lender and ask. Once you have qualified if she can port the mortgage and what its going to cost to do it (if she is borrowing less than the value of the mortgage she has now there could be early repayment charges), make a note of the figure and see if a local independent mortgage broker can find a cheaper way for her to purchase the property, if they cannot then the best thing to do is transfer existing mortgage

HTH

MM

TangentMan

The early repayment charges will be quoted on the offer too.