Help need to remortgage now but will be moving and need to increase mortgage next yea

chillbill

Hi can anyone give me some advice. I need to change my mortgage as should have changed it ages ago and am paying about £100 to much. The problem is I want to pay off a debt also so I can then save some money to move. We are looking to move April at the earliest and will be doubling the mortgage so will need to borrow more money again. Should I negotiate with my current lender for a better rate and extra money (but would this mean I am tied in again) and then look for a brand new mortgage when I move, or get a new mortgage now and remortgage with the same lender next year.

Please help me I am rubbish at these things and get confused easily!
Thankyou

herbiesjp

First port of call - ask your current lender for waht their current deals are.

Secondly - go to a whole of market mortgage adviser and see what they can come back to offer you

I would suggest looking at a mortgage with no tie-ins at any time, as a stop gap until April. At that point you can then decide, once you are ready to move, what types of schemes you will be looking for at that point in time.

You could look to set up the mortgage now to "port" across to the new property, however this will be subject to the features of your current property, and consequently may not be able to set up to your exact requirements.

Porting however, does have its own complications, so it may not be right for you.

Conrad

I would urge you not to tie yourself in. The house move mortgage will be subject to the new property and you meeting lenders criteria (which can change overnight).

Ive come accross situations where a lender told the client the future increase in mortgage should be fine, only to then decline the case resulting in a large and unnecesary early repayment fee.

I wouldnt remortgage. By the time youve paid fees and INTERIM INTEREST to both lenders, it simply wont make financial sense for the sake of a few months.

chillbill

Thankyou both for the advice, I actually spoke to the financial adviser at my bank today and she advised me not to put the loans on to the mortgage as they are under 10,000 in total and two will be paid off within the year. So it looks like I will be staying with Abbey until the loans are paid. I am gutted as am desperate to move to be closer to family and friends and have a larger house. So my next move will be to work out how to pay off the loans as quickly as possible - if only I was a little younger and slimmer I would resort to excotic dancing as a sideline!

I can't believe how complicated and how costly this is - very frustrating!

herbiesjp

chillbill wrote:

Thankyou both for the advice, I actually spoke to the financial adviser at my bank today and she advised me not to put the loans on to the mortgage as they are under 10,000 in total and two will be paid off within the year. So it looks like I will be staying with Abbey until the loans are paid. I am gutted as am desperate to move to be closer to family and friends and have a larger house. So my next move will be to work out how to pay off the loans as quickly as possible - if only I was a little younger and slimmer I would resort to excotic dancing as a sideline!

I can't believe how complicated and how costly this is - very frustrating!

Some lenders will ignore unsecured loans outright.

Others will ignore them if there are leass than 12 months left to run on them

So potentially, if you really did need to move, there could be lenders happy to look at your situation.

HTH