Pay this mortgage off, then get another one later?

Financial_Savvy

Hello all

I hope to pay my mortgage off in 2 months time. But it's only a small house. In the future when we move I will then require another mortgage.

Would I be classed as a first time buyer again? Can I get access to all the same mortgage products later when we move? Is there anything to stop me paying this mortgage off and then getting another one later?

Thanks

Martinslovechild

In truth, 'First-Time Buyer' Mortgages don't really exist any more. There used to be additional discounts available if you were indeed a first-time buyer, but generally these are consigned to the past.

You could shop anywhere for a mortgage when you move, so you'll have the full range available to you.

Providing that there's nothing in your existing mortgage contract regarding early payment penalties, you'll be free to repay your existing mortgage and get another one later. Note that a final fee (sometimes called 'Settlement Fee' or 'Deeds Sealing Fee') will be payable on exit; depending on which lender you're with, this will be in the region of anywhere up to £295 - although if the fee was less when you took your mortgage out than it is today then the FSA has ruled that you are only required to pay the lower of the two amounts.

getmore4less

A decent deposit gives access to good deals.

You can try to remortgage at any time.