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remortgage question
notwithit??
Posts: 200 Forumite
Been lurking on here for a while, and just wanted some advice please!
We are 20 months off being mortgage free! :beer:
If we wanted to buy another property...will it be easier for us to get another mortgage if we remortgage before paying off this one, using the equity from the house as deposit, thus setting us back, or paying off the mortgage and getting a brand new one, should we start looking for a property in 2 years?
i don't quite understand how it works to remortgage?
Am i right in thinking that we will still have only 1 mortgage and a property that we own outright??
Thanks
We are 20 months off being mortgage free! :beer:
If we wanted to buy another property...will it be easier for us to get another mortgage if we remortgage before paying off this one, using the equity from the house as deposit, thus setting us back, or paying off the mortgage and getting a brand new one, should we start looking for a property in 2 years?
i don't quite understand how it works to remortgage?
Am i right in thinking that we will still have only 1 mortgage and a property that we own outright??
Thanks
0
Comments
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A remortgage is a new mortgage with a new lender on your current property to replace the old one, which is paid off by the money from the new one.
If you are looking to purchase a new property, I suggest you leave the current mortgage alone, so you don't have early repayment penalties to pay, when you sell.I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
thanks kingstreet!
We wont be selling the house, it is for our sons to live in when they get older, whilst they save for their own deposits, then maybe we will rent it out when they do buy somewhere of their own.
We are looking at houses now, as the prices are ok...but my hubby is thinking we just pay this mortgage off and look at houses when we have to, in a couple of years.
I just was curious to know if it is better to do that, and start afresh.0 -
How will you fund the deposit for the new purchase?
The mortgage on the current property and the new mortgage for the new property are unrelated and the current one makes little difference to the new one, other than the lender's need to establish both will be affordable.I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
We have some savings, and we will be putting the money (once the mortgage is paid off) into savings too.
I guess we still have a lot of things to discuss,,,most of our thoughts were to get this paid off, then we'll decide what to do, but because i've been looking at properties this afternoon, i've seen 1 and am now thinking...what if!! lol
thanks for your time!0
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