Advice regarding moving mortgage

lisaf

Hi all,
I just wondered if any of you very helpful guys could offer me some advice please?
Myself and OH took out a mortgage with GE Money 2 and 1/2 years ago (due to OH being self-employed and us having poor credit rating).
We are on interest only and are tied in for 4 years so basically we have to give nearly £10k if we move mortgages (which we can't as I don't think anyone would touch us)!
We now want to sell and get a smaller place but stay with GE Money so does that mean we have to still pay the redemtion fee or as we're staying with them, will it just carry on until the next mortgage?
Ge know nothing of our plans yet as we didn't know at what stage to let them know. Our place has been on the market for 2 weeks and we're in no real hurry to sell and we can always stay with parents if we sell quickly and haven't found anything else.
Hope that all makes sense!
Many thanks
Lisa

herbiesjp

Hi Lisa
You need to find out if the mortgage is portable - if it is not you will have the penalties to pay.
If it is, you should not have to pay the penalties. However if you do not find somewhere straight away, you normally have to pay the penalties and they will refund them once you have the found the new property and it has all gone through. There is normally a time limit on this refund period usually 6 months, but check with GE to get the correct details

Please note that porting the mortgage is treated like a brand new application and will be fully underwritten like the original application.

HTH

lisaf

Cheers Herbie for that. I'll get all my paperwork together and look through to find out.
Lisa x

STOTTYCAKE_2

Does anyone know how long Nationwide keeps the portable mortgage open after sale of house?

herbiesjp

Nationwide lending criteria states 6 months - although it does state if it will take lomnger to discuss directly with them, so they may have a little flexibility, but not sure, as I have never had a porting case go over the specified time limits

financial_solution

lisaf,

GE Money is now a "fusion " of 2 companies. IGroup and First National. The terms and conditions of your mortgage may be dependent upon which of these companies you took your mortgage out with if it was prior to the combining of the 2 companies.

To the best of my knowledge the current position is that (certainly with igroup products) when you re-finance with them they will offer a 2% reduction on the redemption penalty (ie, rather than 6% it would be 4%) but you get a discount (0.25%) on the new rate under one of their refinance ("ref" prefix on plan selections) plans. This procedure has usually been when a deal has been remortgaged and no sale has take place and accordingly there has been no delay between the old and new transactions.

I feel that when you redeem, if you have no new deal ready to complete) that they will charge FULL redemption penalties. You will then be required to approach them for your new mortgage at which time you could "request" the "re-finance" plan and qualify for a refund of redemption penalty and reduced new interest rate. I think the time allowed between mortgages is six months.

THE ABOVE IS NOT TO BE CLASSED AS ADVICE. I AM PREPARED FOR SOMEBODY WITH THE DEFINITIVE LITERATURE IN FRONT OF THEM TO CORRECT ANY INACCURACY(IES). I THINK MY POST IS ACCURATE AND IS INTENDED TO ASSIST.

If you would like further clarification just post and I am sure myself or somebody else will be able to assist. If it was office hours I could have double-checked before posting.

Why dont you think anybody else will lend to you on your new home? If GE will lend there may be others as GE are not the only non-conforming lender. It may be worthwhile shopping around.

Good luck,

Regards,

mark