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Moving Home - mortgage advice
Nikkif_2
Posts: 43 Forumite
We have recently accepted an offer on our flat for £162,500 (purchased 8 months ago for £155,000) and have been looking for a new house to move into. We have found one and have had our offer accepted of £182,000.
I went to see the mortgage chap at Nationwide yesterday (our current mortgage provider) and he told me about porting my mortgage for the additional borrowing, which means our repayments will go up approx £125/month from what we are paying on this place. This means we will have £118,000 at 4.69% and £24,000 at 4.99%
However, if we pay off our current mortgage in full from the proceeds of our flat and then pay a early repayment charge of £4800, we can get a brand new mortgage which gives us alot more options (different banks and deals etc) which could mean our repayments could go up anywhere between £15-£50/month on top of what we are paying now.
The lower repayments are attractive to us as it means we could live more comfortably, with the option of making overpayments, but it would mean paying the early repayment charge mentioned earlier.
My brain has completely turned to mush as I saw the mortgage advisor yesterday at 11.30am and have been trying to work out all the permatations since! I have about 10 pages of A4 paper with calculations and workings out!
Any help or advice would be really appreciated. Thank you
I went to see the mortgage chap at Nationwide yesterday (our current mortgage provider) and he told me about porting my mortgage for the additional borrowing, which means our repayments will go up approx £125/month from what we are paying on this place. This means we will have £118,000 at 4.69% and £24,000 at 4.99%
However, if we pay off our current mortgage in full from the proceeds of our flat and then pay a early repayment charge of £4800, we can get a brand new mortgage which gives us alot more options (different banks and deals etc) which could mean our repayments could go up anywhere between £15-£50/month on top of what we are paying now.
The lower repayments are attractive to us as it means we could live more comfortably, with the option of making overpayments, but it would mean paying the early repayment charge mentioned earlier.
My brain has completely turned to mush as I saw the mortgage advisor yesterday at 11.30am and have been trying to work out all the permatations since! I have about 10 pages of A4 paper with calculations and workings out!
Any help or advice would be really appreciated. Thank you
0
Comments
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All we can do is what you've done. Calculate the costs of porting and taking the additional borrowing on the offered rate over the time the deals run for.
Then calculate the costs for the new deal over the same period, adding the ERP to the total.
The lower cost figure you get should be the more sensible route.
This assumes the follow-on rate is the same, 3.99%?
Have you got £5k spare to pay this, or will you add it to the loan. If so, think about the additional interest payable on this for the whole term of the mortgage...I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
How are going to fund the ERC of £4,800?0
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My boyfriend has some inheritance which we could use to pay it offThrugelmir wrote: »How are going to fund the ERC of £4,800? 0
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