Moving house and mortgage

Cherokee_2

Hi, can anyone tell me, when you move house do you need a brand new mortgage or can your existing mortgage be transferred? My friend is looking to move house but the one she wants to buy is only about £8,000 more than her current one is valued at. She is with Northern Rock at the moment on a fixed interest for 3 years (she has had the mortgage for just over a year) Its a long time since I moved house so I havent a clue and as she was a first time buyer on her current property she is pretty clueless too. Any advice would be welcome

PBA

It depends on what was arranged on the existing mortgage, although they are normally portable so your friend could probably transfer the existing mortgage to the new property. She should arrange to see a Northern Rock advisor (they will know more about their own products than an independent broker) to see what can be done.

toonfish

Northern Rock will usually allow any further borrowing on the terms of the existing loan, which is an excellent arrangment for most cases. Providing the income is sufficient it would probably be unwise to switch lenders.

herbiesjp

She should be able to port the mortgage, but remember that porting the mortgage is treated like a brand new application and therefore all the credit checks, income verfication etc will be done again

As long as her circumstances have not changed in a negative way i.e. lower income, higher debts, then NR should be the first port of call

HTH