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Please help me understand!
summer1982
Posts: 44 Forumite
Mortgages baffle me so please can someone shed some light...
We took out a mortgage for £154,000 at 7.8%...so we owe something like £400,000+
if we were to stick with this mortgage.
The fixed rate is up in July so we will apply for a better one.
However, if we were to sell this house for £190,000, could we spend that on our next house (minus any fees etc)?
We took out a mortgage for £154,000 at 7.8%...so we owe something like £400,000+
if we were to stick with this mortgage.The fixed rate is up in July so we will apply for a better one.
However, if we were to sell this house for £190,000, could we spend that on our next house (minus any fees etc)?
0
Comments
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I think the £400k figure you refer to is the total paid over the full term?
7.8% !!! do/did you have adverse credit?
If you move now, assuming you sell for £190k and your mortgage is still £154k, you would have £36k less fees to put don on your next property.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
We were first time buyers with only £8k deposit, think the mortgage company saw us coming! If I knew a bit more I probably wouldnt have gone for it but we were so happy that we could even get a mortgage we went for it.
So, (sorry bear with me) we would pay the mortgage company back, have £36k less fess for a deposit on our next property and would have to re-apply for another mortgage?
What if we are still in our fixed term?
Thank you
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If you are still tied in, you will either have to pay a penalty and go elsewhere, stay with your existing lender, or do not complete until July when your fixed rate finishes.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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or your fixed rate may be portable, check your T&Cs0
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Agree with all of the above.
Check what rate your mortgage will go to when your deal ends. If you revert to a standard variable rate, you could find that this is cheaper than any product you can move to. New products are tied to expensive Base Rate Mortgage %'s so check before you fix again.
And yes, 7.8%! Jeez. If you don't revert to a cheap SVR, you shouldn't be paying anymore than 3-5%.0
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