How does a "sideways move" work?

shaneandhisdog

Apologies if that's the wrong term to use but I wasn't sure. Basically we want to move but aren't in the position to take out a new mortgage or borrow extra on top. All we want to do is sell our house and buy another for the same price (neighbour problems if you're interested). Just wanted to clear up a few things;

What happens with our current mortgage?
Will it get transferred to the new property?
Will we have to apply for it all over again?

Obviously we would have to pay the usual fees but are there any we might get away with?

Hope you can help.

seven-day-weekend

Usuallythe mortgage on your old home would be cleared upon completion of the sale and you would take out a new one for your new house.

tanith

As seven-day-weekend says you would normally take out a new mortgage and pay all the normal fees of buying a house...

In answer to your questions..

1. It gets paid off when you get paid for your house..
2. No
3. You will likely have to apply for a new mortgage...

I am not an expert but AFAIK this is how it works...

Nenen

Just in case you have a fixed rate mortgage with early redemption fees you might like to know that some lenders (e.g. ours being the Chelt & Glost) will allow you to port your fixed rate to you new property without paying the early redemption charges. You still pay off the old mortgage and take out a new one but as long as it is within a certain time scale (I think usually 6-12 months) then they will either a) waive the fee if you sell and buy on the same day or b) repay the fee if you sell and then buy a few months later.
HTH and good luck

calmspirit

Abbey will allow you to port curent mortgage across, only paying early redemption fees on difference if small mortgage
hope this helps

Richard_Webster

tanith wrote: »

As seven-day-weekend says you would normally take out a new mortgage and pay all the normal fees of buying a house...

In answer to your questions..

1. It gets paid off when you get paid for your house..
2. No
3. You will likely have to apply for a new mortgage...

I am not an expert but AFAIK this is how it works...

Effectively this is right. People talk about porting or transferring the mortgage but it is often not understood that, whilst this may have an effect on whether or not you have to pay penalties for repaying early, from a legal point of view the lender will want all the legal points about the house you are buying checked and will want it valued for their purposes and also may reserve the right not to agree the transfer if your circumstances have changed and you no longer meet their earnings criteria, etc.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients