We Want To Move House

russellbailey320

Myself and my girlfriend are currently living in a 1 bedroom house and have been for 8 months but now we feel we need to get a bigger place.

Our current mortgage is for £82,000 with £10,000 that I put in myself but now we need to get out of our 3 year fixed mortgage with Kensington Mortgages which has a £5,000 early repayment charge.

I was just wondering if it was possible to change the mortgage to another one without paying the £5,000 or if possible to use some of the money for the £10,000 that I put to pay them off.

Any ideas please??? Desperate for help to get out our small house.

P.S. This is my idea not my girlfriends, but if I can keep my 1 bed house and get a buy to let mortgage and get a new mortgage for our new house. Can I get help on both scenarios please.

Russell

herbiesjp

You could look to let out your current property and buy a new one - that is if Kensington give you consnet to let, and that way you would avoid the penalties on the first property

However, whether this would work will depend, ona whole range of things such as what rental income you would get from the first property, what your incomes are, what you credit history is like, if you have other debts, what deposit you have etc.

russellbailey320

OK say that I just sell my first property cound I stay with Kensington but get a bigger mortgage and not pay them the £5k would I still have to pay the £5k.

Would it be easier to just sell my first house pay the £5k and just move?

Could I use part of my initial £10k deposit to pay the £5k fee?

Thanks for your help by the way!

MortgageMamma

You could sell the house you have now and see if your contract allows for you to port the mortgage youhave got now to another property and that would prevent the early repayment charge

speak to a whole of market mortgage broker about this

russellbailey320

So if I wanna change mortgage company I pretty much will have to pay the £5k.

MortgageMamma

You will if you want to change mortgage company but if you could port the mortgage then you could avoid this

russellbailey320

Thanks for the info. I'll try ringing them up tomorrow.

russellbailey320

I've rang them up and they are going to get back to me.

What happens if I can't port my mortgage? Can I pay the early repayment fee out of my £10,000 deposit that I put in?

wardlaw

The answer is yes

If the mortgage is not portable, and you have to pay the 5K

I would look at the BTL route with your exisyting lender and try and borrow the 5k on your existing house

That way you do not need to pay out 5k and still have a 10k deposit

herbiesjp

Indeed - if it is not portable and you want to move, you will have to find some way of paying that penalty fee

kennyboy66_2

Is the £5k penalty fixed for the term of the mortgage or does it reduce after year 1, year 2. Worth thinking about completion date if you do move.

What interest rate are you paying at the moment ?

Without knowing all the details, £5k redemption charge seems a huge amount on that size of mortgage.

I assume you had to go to Kensington because you credit rating was not that good. Perhaps you should be looking into improving your credit history before buying more poor value products from them.