How to get 2 mortgages back in step

fivepound

Hi, Im selling my house at the mo and have had an asking price offer on it (although he wants vacant possesion on it). I have a 2 year deal on my current mortgage with A&L so if I move up the housing ladder and borrow more money I would have to take out another product with them to cover the additional borrowing. This will mean paying for a new product and having 2 products with different end dates for any "special deal" on them i.e fixed/discounted etc, Is there any way I can organise it so that I can end up with just 1 product. My current deals expires in March 2008.

With the interest rate going up maybe its better to rent and wait for "the big crash".

Thx

going2die_rich

There isn't going to be a "big crash"!

Just a lot of people going bankrupt. House prices will level off sooner or later but they aren't going to drop, not unless we end up in a serious war or some sort of plague begins killing the population off. (In them cases no one would want to buy anyway as you'd be more worried about stocking up on food!)

The UKs housing prices can be sustained because we are becoming an even richer nation.

Those waiting for a crash are dreaming. Isn't going to happen. But plenty of people are going to become insolvent but their are more than enough buyers out their to snap up their properties.

Older generations aren't just saving up for retirement by putting money away in a bank anymore, they are buying property knowing it'll increase in value while giving them a regular income now.

Property is seen a lot more as an investment now compared to just being a home. Hence the rise in demand.

As for your mortgage product, you may be able to port your mortgage product so that it goes to the next property with the higher borrowing. It'll require you basically starting a new fresh mortgage but with the same provider so should avoid any early repayment charges that may occour from you selling your property in the incentive period.

Only your provider can tell you that though.

silvercar

Two ways of doing it, either take the extra amount on a variable no-penalty deal and remortgage the whole lot in March 2008 or keep the current deal going and find another deal for the extra amount that ends as near to March 2008 as you can. Accept that around that time there will be some amont on a non discounted deal.

Your lender may be able to advise. we had a similar problem and they found us a deal which finished at the same time as the existing deal.

Leon_W

Yep

Silvercars suggestion is the way to do it. If the additional borrowing is small then you may find this is best arranged on a deal with no tie ins so you can move the whole lot in March 08. If the additional borrowing is quite large it may make more sense to take a "deal" with tie ins and let the original amount fall onto the SVR. You'll have to get your pen and paper out !

Remember that it is in the lenders interest to tie you in so also take advice from a broker aswell as A&L.

regards
Leon

fivepound

Thx, some interesting points, it just confirms that there is no MAGIC fix out of it.