Nationwide base rate. Should I go to a fixed rate now?

JackKipling

Thrugelmir wrote: »

I've found 10% to be the norm over the years.

Does that mean my house needs to have an equity of 10%, so that we have the 'cash' at the time of the move or would the equity only refer to the existing mortgage and the extra mortage would need a separate cash payment? Not sure that even makes sense to me lol x

getmore4less

JackKipling wrote: »

Does that mean my house needs to have an equity of 10%, so that we have the 'cash' at the time of the move or would the equity only refer to the existing mortgage and the extra mortage would need a separate cash payment? Not sure that even makes sense to me lol x

there is the total equity to determine LTV.

But on exchange the vedors solicitor will ask for a cash deposit often 10% this forms part of the total for LTV.

In my experience if you say I only have £X this will often be ok.

Burridge60

If you are in a chain the deposit offered from below might well be used as your onward deposit subject to Conveyancers and their clients agreements.

You need to consider the sale of your old home and the purchase of the new one being made as separate matters in the Conveyancers hands.

The sale comes first and the costs, charges, EA fees and repayment of your "old" mortgage get settled and the rest (your equity) is passed to the other hand for the purchase.

He then calls in the money from your lender (your ported deal forms part of this amount) and if there is not enough from your sale to make up the full purchase price he will ask you for the difference.

If you have a limited amount of cash available which is not tied up in the property you should tell him at the outset (but his client information forms will normally have a question about this).

I agree. If you want to preserve as much of the mortgage at the 2.00% plus BoE rate for your new mortgage switch to saving in a savings account to boost your ready cash for your move.