Fixed deal and moving house

Grunts

We have a fixed 2 yr deal (and have done 6 mths) with the Nationwide. If we sell and move I understand it that if we keep the deal and providing they will lend us the money we can continue with them without paying the penalty.

However, what happens if the house I am buying is 20,000 more? If they could lend it to us would we take out a kind of mini mortgage for that amount with them.

Any advice please because I am not quite sure.
Thanks.

wardlaw

It sound the mortgage you have is portable, so you can move it to your new house,retain your current fixed product and do not need to be exposed to any redemption penalties as a result

If you are requiring an increase in your mortgage, , as you need to obtain a bigger house, which is natural, you simply top up your existing loan, with a new one You can ask your mortgage provider what is the best option, available to you based on your own, individual circumstances Do you want another fixed rate for instance ?

Its quite easy and common place

John

Ivrytwr3

I may be in the same boat soon. I currently have an £85k mortgage and may need to increase this by approx £60k. My mortgage is portable and still has 3.5 years left of the fixed rate.

Providing my mortgage company are will to loan me more cash are you saying i keep the exact same terms and conditions? (but increased monthly repayments)

wardlaw

Hi Ivry

Not exactly,

You keep your existing loan, but the new one, or "top Up" will be on different terms and conditions with a different rate and so on

If you want, for instance another fixed rate, it will probably be different from the one that was offered to you at the outset But may still be compatative

Hope that this helps a bit

John

Ivrytwr3

now i'm confused; lol!! So if i'm taking out a top up with a different rate etc, doe sthat mean i am liable to pay arrangement fees etc as per a new mortgage?

kristian13

i have had four nightmarish weeks with halifax giving me a decision on porting my existing mortgage over to a new property. it took them four weeks of endless bad communication to decide we cannot port the same amount of borrowing over to a house we are buying which we should have signed contracts mid may. they declined us on our earnings not being enough when we were earning less last year when we took a fixed tracker with them for 170000 interest only. chap who declined me said they would waiver 7000 fees if we got another mortgage offer. went into a branch at the weekend, another adviser was annoyed at the way we had been dealt with then tells us we cant have the interest only have to have a repayment as we have no isas etc which will be 350 per month more then she tried to jiggle figures even advising me to spend my credit card on moving fees instead of our 5000 savings we have. mad a complaint later on the halifax customer services demanding they waiver the fees as basically they should have not given us an interest only mortgage promised us we could port it and then tell us half way through the tracker that we hve to go on repayment 350 more which will take us under am i right in my request any help would be appreciated thanks

wardlaw

Hi Ivry

Sorry, I did not mean to confuse you

The answer is, possibly You might very well have to pay fees to attract a new mortgage, or Additional Borrowings, just like when you took out yoir mortgage at the outset

As you are an existing borrower, and wish to port your mortgage to purchase your new residence, the fees may not be too high You would have to discuss this with your lender

John

IHateDida

I've got another question based along the same lines.

I'm on a fixed rate 5 year with 2.5 years still left on it - owing £64k with Halifax. But like the others, I would like to upgrade to a bigger house borrowing an extra £80k. Do I have to stay with the Halifax cos' I'm on a fixed deal and it would cost me a fortune to get out of it, or can I take the whole mortgage elsewhere?

Also.....how does it work with fixed deals - I'm currently paying a fixed rate of 5.19% (or something like that!) - what would the Halifax now offer me on a 10 year fixed - would it likely to be the same as advertised - 6.19% on the whole of the mortgage or could I negotiate? (sorry to sound dim - I have no experience of such stuff - as I'm still in my first house!).

Advice appreciated. Thankyou! :beer:

wardlaw

I would stick with your present fixed rate as its competative IN FACT THE CURRENT BEST FIXED RATE OVER SAY 2 YEARS IS 5.39% (fee£999.00 SO STICK WITH IT ITS VERY GOOD

Also it would avoid having to pay redemption charges

If you move house and need a larger mortgage, but want a 10 year fix, this can be done with your present lender, the Halifax I do not know the current rate

John

You aint dim these questions are quite normal+

hcnim

Hello, longtime lurker, first time poster.
We'll currently be in the same boat, looking for an extra £30k on a £115k mortgage. The question I'd like to ask is when porting a mortgage (with Nationwide) will we be expected to pay a deposit on the extra £30k lending, seeing as it will be a separate mortgage?
Theres no mention of it so I'm hoping that it won't be needed. The extra £30k for the new house roughly equates to 20% of the total value of the house.

Sorry if this is a stupid question, but it just seems like there's so many hidden costs in moving!

Many thanks for any replies

JoeK_3

kristian13 wrote: »

i have had four nightmarish weeks with halifax giving me a decision on porting my existing mortgage over to a new property. it took them four weeks of endless bad communication to decide we cannot port the same amount of borrowing over to a house we are buying which we should have signed contracts mid may. they declined us on our earnings not being enough when we were earning less last year when we took a fixed tracker with them for 170000 interest only. chap who declined me said they would waiver 7000 fees if we got another mortgage offer. went into a branch at the weekend, another adviser was annoyed at the way we had been dealt with then tells us we cant have the interest only have to have a repayment as we have no isas etc which will be 350 per month more then she tried to jiggle figures even advising me to spend my credit card on moving fees instead of our 5000 savings we have. mad a complaint later on the halifax customer services demanding they waiver the fees as basically they should have not given us an interest only mortgage promised us we could port it and then tell us half way through the tracker that we hve to go on repayment 350 more which will take us under am i right in my request any help would be appreciated thanks

Christian, you would get far more help if you posted this as a new thread, as advisers cannot find it.

When the Halifax adviser asked you how you would repay your mortgage at the end of the mortgage term, what was your answer?

JoeK