new mortgage

pbfhpunk

I currently own a house on my own and the 2 year deal runs out in August so I'll be sorting a different deal. However the mortgage is portable and I'm planning on buying a new house in the next couple of months, this will be with my fiance so a joint mortgage.

Does "portability" include switching mortgage from single to joint names and will we be able to sort a new deal now or still have to redo it in august?

hope that makes sense!!

thanks

Helen

silvercar

portable generally means moving your current deal to your new home. This would be subject to lendling criteria on the house and looking at your salary/affordability again. Basically a completely new application but you would keep the same deal for the money already borrowed.

Changing the names on the mortgage would not normally count as the same deal, so I would be inclined to let this one expire and take a new deal on the new place. This would mean you could search the whole market for the best deal rather than be restricted to your current lender.

pbfhpunk

does that mean that I should wait to buy a house until July time closer to the expiry date or can I apply now for the mortgage to start in July so It's in place?

silvercar

phone your current lender, ask them whether they would port your current deal to a new property and allow your fiance to go on the mortgage. you will probably need to tell them the size of mortgage you want, the value of the new property and your current incomes. They should be able to tell you then and there if they will let you port in this way.

If they won't then, to save paying out redemption penalties, you will need to make sure you complete on your new place after the date your current deal ends.

I would still allow 3 months from putting your current home on the market to completing on your new place.