Selling up then Saving then Buying again

Jonathan1985

Can anyone help.

I have a house I have lived in for year. I am going to sell up and take the +£25000 Equity, pay of mortgage and early repayment fee and move back home with parents for 6 months and save to £35.000 Deposit.

My only concerns are, will it be easy to get another mortgage at if I have 30% deposit?

Will it go against me that I paid off my mortgage early? also because I will effectively have moved homes twice in one year will that effect my credit rating?

How important is it that I switch back onto the voting register at my parents.

Once mortgage is totally paid off how long until this is updated on my credit history to show I have no outstanding mortgage ?

Sorry for all the questions!

Gary123456790

Jonathan1985 wrote: »

I have a house I have lived in for year. I am going to sell up and take the +£25000 Equity, pay of mortgage and early repayment fee and move back home with parents for 6 months and save to £35.000 Deposit.

Does all the money spent on the early repayment, estate agent, stamp duty, etc. justify it for only 6 months saving?

Jonathan1985 wrote: »

My only concerns are, will it be easy to get another mortgage at if I have 30% deposit?

Should not be too difficult if your credit rating and salary are both agreeable. 30% is a healthy deposit.

Jonathan1985 wrote: »

Will it go against me that I paid off my mortgage early? also because I will effectively have moved homes twice in one year will that effect my credit rating?

Should not cause any problems. Out of interest why are you selling and then buying again soon after?

Jonathan1985 wrote: »

How important is it that I switch back onto the voting register at my parents.

Not sure - for 6 months probably doesnt matter that much as the council take a while to update the register anyway...

Jonathan1985 wrote: »

Once mortgage is totally paid off how long until this is updated on my credit history to show I have no outstanding mortgage ?

Creditors update the credit reference agencies once a month, so this should show up pretty quick once paid off.

Gary.

Jonathan1985

Thanks Gary. i want to relocate. i currently live in an area 20 miles away from home. i wish just put house on market, if it sells and i cant find another near home i will move back with parents and save.

idealy i will find a house while my sale goes through

Gary123456790

Chances are if you can buy and sell at the same time, you'll avoid the early repayment penalty even if you're in a fixed/tracker deal.

Some lenders allow you to buy another property within 90 days of selling the old one and still avoid the ERC.

If it were me, id either try and do it together to avoid the ERC or stay at the parents a little while longer and save more, since you'll be saving far quicker than you can while paying a mortgage.

Perhaps work out for each year living with parents, how many years shorter does this make the mortgage?

Gary.

Jonathan1985

ok will look into this. thank you. i am with santader so not sure what they are like with 90 days etc ?