Help please - I dont understand?

inspiremetosave

Hello,
I hope someone can help me with some advice on my mortgage. I have tried to give as much info as I can :
I have a 2 year fixed rate with the Woolwich for £123,000 which is due to end January 2008. We would now like to move in the next 3 months to a more expensive house - should make about £25,000 on this house and looking at a new house around the £200,000 mark if they will allow us to borrow this amount. But what happens to the mortgage? Does this just transfer to the new house? What about the extra money - will this be at the same %? Will my fixed term still be up in January? What if they wont lend me as much as I need?
Any help and advice will be much appreciated - especially in laymens terms! I dont want to call the Woolwich before I at least know the basics of what I'm talking about!!!!!

firesidemaid

it will depend on the terms of your mortgage. most fixed rates will have some sort of financial penalty if you move/pay off within the fixed period.

also, the mortgage may be portable ie. you may be able to do as you wish if they will lend you the extra money - but not all are portable.

you need to look at your original paperwork and/or give them a ring.

Mr_helpful

The mortgage if portable will carry the terms and conditions over to the new house but any extra wont be at the same rate. For the top up you want a deal with no redemption penalties so after you fix rate ends you can remortgage everthing to a new rate

JoeK_3

If you settle your existing fixed rate mortgage, you will more than likely incur a redemption penalty. If your mortgage is portable, then the redemption penalty will be paid back to you.

As for the extra loan amount, that is subject to the Woolwich criteria for lending and will be subject to underwriting.

Ring the Woolwich and tell them of your plans and ask them if they will be able to help.

JoeK

UK007BullDog

Most Woolwich mortgages are portable. Read your original offer letter.
The extra you need will be on an interest rate that is offered now. It will not be on the fixed rate you have now.

There will be a porting fee. There might be a new product fee for the extra borrowing, depending on the product you choose. There might also be a fee to survey the new property. The fees depend on the product you end up taking up. The more freebies you go for the higher the interest rate.

The amount you can borrow extra will depend on your income and all your outgoings etc, i.e. affordability.
When you ring them they will refer you to your local Woolwich Mortgage Adviser as you are asking for extra borrowing.

a number to call is 0800 000 929.

Good Luck!

PS forgot to add: If you have a reserve and you used it as well and have an outstanding amount you will not be able to port it over but have to either pay back the reserve or do a remortgage to consolidate the reserve, which means they will charge you an early redemption fee. Best is to look at your offer letter regarding the terms you have on your mortgage and any reserve, and then to book an appointment with your local adviser to go through all your options.