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Moving and early repayment charges
mr_tickle_2
Posts: 27 Forumite
Hi all,
I have a mortgage with The Woolwich (now part of Barclays). This mortgage started in October 2004, and has a discount rate until October 2007, at which point it reverts to SVR. I have quite large early repayment charges (3% + £500). This mortgage is in my name only.
I therefore still have 6 months before I'm free of early repayment charges, however, it would really be beneficial if I could move house now. The house I'd like to move to is more expensive that my current house, and also I'd like the new house to be in both mine and my girlfriend's name.
Am I right in the following assumptions?
I can't port my current mortgage, as (a) I'd have to pay the early repayment fee (b) The next house would be in joint names (I don't earn enough to buy it on my own)
I think that I could sell my current house, pay off the mortgage, and have about £20k left over, which would be the deposit for the new place.
I thought about renting my current house out, but then I'd have no deposit for the new place.
I'm not sure if the best thing to do would be to just swallow any loss, or maybe make an offer on the next place subject to completion in October. Is this unreasonable?
Thanks in advance.
I have a mortgage with The Woolwich (now part of Barclays). This mortgage started in October 2004, and has a discount rate until October 2007, at which point it reverts to SVR. I have quite large early repayment charges (3% + £500). This mortgage is in my name only.
I therefore still have 6 months before I'm free of early repayment charges, however, it would really be beneficial if I could move house now. The house I'd like to move to is more expensive that my current house, and also I'd like the new house to be in both mine and my girlfriend's name.
Am I right in the following assumptions?
I can't port my current mortgage, as (a) I'd have to pay the early repayment fee (b) The next house would be in joint names (I don't earn enough to buy it on my own)
I think that I could sell my current house, pay off the mortgage, and have about £20k left over, which would be the deposit for the new place.
I thought about renting my current house out, but then I'd have no deposit for the new place.
I'm not sure if the best thing to do would be to just swallow any loss, or maybe make an offer on the next place subject to completion in October. Is this unreasonable?
Thanks in advance.
0
Comments
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You'll need to check with the Woolwich, but I suspect they would allow you to port this loan, even though you are adding your partner to it.I am a Mortgage AdviserYou 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.0
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