Home moving and fixed rate mortgage

loopyblonde

Hi, I hope I'm posting this in the right place. I haven't moved for 10 years and when we bought our flat we were first time buyers. I am finding moving/increasing the mortgage very confusing!

We've got a buyer for our flat for £192,500 and we've had an offer of £262,500 accepted today on a house. My Dad's also giving us £15,000 to help things. At the moment we've got a £72,000 mortgage with RBS on a fixed rate till November 30th this year. We can't get out of this mortgage without paying a 3% penalty so we need to port it I think.

We need to borrow £140,000 more to get our new place

So my questions are...

What will RBS do to add the £140,000 to the exsiting mortgage?
Will we have to start a new mortgage as well as out current mortgage?
Do we get to keep our current rate till november on the new borrowing (2.19%)?
Will our mortgage still end in November so we can move it?
Will we be stuck with RBS forever?

I'm normally quite financially savyy but this has me a bit stumped. We've agreed an 8 week completion just to complicate matters!!

Hiedi

bigadaj

Why do you need to borrow that amount in addition if you apparently have 120000 equity currently.

The new mortgage will be a new application so you need to check that rbs will accept it and you can port your current rate. The new money will be at a different rate. Either their SVR or an agreed fixed or discount.

The penalty in moving would be a little over £2000 so it would be worth seeing what deals are available elsewhere as this might be paid for by a better rate from another bank.

You really need to get this sorted if you are completing ina. Few weeks.

jamiefly

As bigadaj is saying it might be worth taking a £2k hit and getting a better rate elsewhere. Looks like you'll be eligible for a good fix at ~4% ten year or 3% five year.

What's your current rate?

loopyblonde

Thanks for this, I now understand what's going on and what my options are! I spoke to a lady earlier who made it all sound like gobbledegook, she got me totally confused by saying 3% of 72000 was £21000 to get out of my mortgage. I'm so tired today I didn't even spot her error!!

My current rate with RBS is 2.19% fixed until 30/11 this year

I need to borrow appx £140,000 as we need to put appx £10,000 fees onto the mortgage. the purchase price is £265,500 and we have a deposit from our equity of £120,500 plus my Dad is giving us £15,000 (so a total deposit of £135,500)

As this is our first move since being home owners as opposed to first time buyers I had no idea that we could've got a mortgage agreed in principle ages ago as our estate agent didn't tell us. I just hope things can get sorted quickly!

bigadaj

Fair enough, so you need to borrow. Total of 140k, not in addition to your current mortgage. In that case then looking elsewhere will be tougher to make sense as you are boring an additional 70k only, and you'll effectively need to save your two grand from this.

Looking at other options will however give you an idea about what is available.

bigadaj

If you could have waited for the move until November the. Things would be straightforward, as t is it would,probably be preferable to take the additional borrowing from rbs at their SVR. Then look to remortgage when the fixed rate ends unless your current lender can offer you.a good deal.

jamiefly

Not much point in porting a fix with only 10months remaining if it's going to default on to their current SVR of 3.99% when you can fix the whole sum at 3.39% for five years with no fees.

Strewth £10k is a lot what's the makeup of that?

kingstreet

jamiefly wrote: »

Not much point in porting a fix with only 10months remaining if it's going to default on to their current SVR of 3.99% when you can fix the whole sum at 3.39% for five years with no fees.

Strewth £10k is a lot what's the makeup of that?

£8k stamp duty.

Thrugelmir

loopyblonde wrote: »

We've agreed an 8 week completion just to complicate matters!!

No point in committing at such an early stage. You are in a chain so all sorts of things could cause delay. Not least people with their own agenda.

loopyblonde

Thanks for all your help. The £10k is to cover solicitors costs for selling and buying and removal vans etc.

Thrugelmir, we're both chain free so it should be a quick transaction I think.