2nd time buyer question

ste1200

Hi, I bought my first house in Dec 2007. I currently owe £110,000 on my mortgage which is at a fixed rate of 5.99% until Dec 2012. I am looking to move but I'm not sure where to go or what to do about my mortgage. Do I put my house on the market and then go to the mortgage broker I went to the first time I bought and get a new provider or do I contact my current mortgage provider when I find a house I'm interested in to swap the mortgage over ? I just don't have a clue what to do and any help would be appreciated.,

Thanks
Ste

ste1200

Would the mortgage I have just move to the new house with the same interest rate of 5.99% until the end of the 5 year term ? Can somebody advise please ? I would rather have an independant view than a biased one from my broker or mortgage provider.

Thanks in advance.

beecher2

If your mortgage is portable, you'll be able to move it to the new property, subject to your lender's criteria. First thing to do is contact your lender and find out if it is portable.

Realistically work out how much your house would sell for, take off fees/moving costs and work out how much of a deposit you'll have for your new house. If it is less than 10% then you've got no chance of moving.

Check your credit file and work out your salary multiple needed too and make sure it is realistic.

mic200202

The mortgage itself isnt portable, its just the product,ie the fixed rate for the same amount as you owe.

This may save you any early repayment fees for leaving the deal early if you sell up before the end of the year.However,you are then restricting yourself to the same lender for your new mortgage.

As things have changed in the market,this may not be as easy as before.

Talk to an independent broker.He will work out the pros and cons of a new deal with a new lender or sticking with the existing.

ste1200

Thanks for the advice, it turned out it wasn't feasable so having to stay put