We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
7 year fixed mortgage
katieg12
Posts: 1 Newbie
Hi
I currently have a 7 year fixed mortgage but i am looking to move home. Is it possible to move to a house worth less than the house I currently live in? If so how would a transfer work, would I be expected to pay any penalties?
I currently have a 7 year fixed mortgage but i am looking to move home. Is it possible to move to a house worth less than the house I currently live in? If so how would a transfer work, would I be expected to pay any penalties?
0
Comments
-
If your current mortgage product is portable, then in principle you can move the balance that you need to a new property, and pay any early redemption fee on the amount which is not transferred.
e.g. present amount outstanding = £100K, new mortgage = £80K, pay ERC on £20K.
If you don't want to ask to port your current product, you'll need to pay it off in full and pay the ERC in full.
Bear in mind that porting is just the right to transfer your existing interest rate / T&Cs across to the new mortgage once you've been accepted for a new mortgage by the lender on current affordability rules.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards