Help! Mortgage confusion!

miniloopie

Hello,

I'm hoping someone can help me, Im getting very confused over my mortgage and potential re-mortgage... doesnt help that we are in the process of moving house... Ill explain as clearly as I can...

Basically I need the most economic way of doing this so I thought this would be the best place to ask!

We currently have a mortgage with B&W and the fixed rate term ends 30/09/07.
We are moving house and want to borrow additional funds to pay for the new place - no problem, I've applied for a top up on the current mortgage on their SVR so that there are no redemption fees at the end of the tie in period and we can lump the whole lot into a new mortgage.
All ok so far... IF we manage to move before the 30/09/07. Not that likely since we have only just started the process.

So, Ive seen the mortgage I want to apply for when the current fixed rate ends - with A&L - BUT do I start the application process now for my current mortgage amount on my current house ready for when the fixed rate deal runs out, or do I try and apply for the new mortgage amount at the new house? OR do I apply for current amount at current address and establish they SHOULD lend me the additional we need when we move?!

I'm sure it should be a simple process really and Im getting myself confused - its the clash of the fixed rate running out and us moving house - and not having any firm moving dates as yet.
Im in the process of applying for the top up loan so wasnt sure if I should start applying fo rthe new mortgage yet or not, or indeed how much to apply for?!

Can anyone help me get my brain straight on this!?

Thanks, Sally

lynnexxxo

Have you found a house you want to buy? And have you got yours on the market ?

I'd approach the new mortgage company and get a decision in principle for the amount you need to borrow. Then I'd try and make your moving dates after 30 sept - which means you can repay your existing mortgage without any penalty charges.

And if you can wait for the money - instead of getting a top up loan could you not take the extra from your new mortgage?

miniloopie

lynnexxxo wrote: »

Have you found a house you want to buy? And have you got yours on the market ?

I'd approach the new mortgage company and get a decision in principle for the amount you need to borrow. Then I'd try and make your moving dates after 30 sept - which means you can repay your existing mortgage without any penalty charges.

And if you can wait for the money - instead of getting a top up loan could you not take the extra from your new mortgage?

Yes ours is SSTC and we have had an offer accepted on the new house. I have an agreement in principle for both the 'top up' on the existing mortgage and for the whole new mortgage on the new house - having spoken to the mortgage company Ive applied only for the brand new mortgage on the new house.

My question now is, assuming we complete after the 30th Sept - and we are still living in the original house, what happens to my original mortgage? Will it just revert to the SVR till I go to the new mortgage?

Thanks! Sally

absolutebounder

OMG are you really that tight that you cant face a few days on the variable rate?

MortgageMamma

absolutebounder wrote: »

OMG are you really that tight that you cant face a few days on the variable rate?

:rotfl::beer:

On the seriousl side, Iwould just set the completion date to after when the early repayment charges are, and apply for a new mortgage. you are just complicating the situation for yourself.

miniloopie

Lol, I wasnt trying to be tight, just wondered if that was what would happen! Mind you, a couple of months on the SVR wouldnt be fun - who knows when the sale etc will actually go through?

As you can tell, Im hardly a master of money but hope Ive got it sorted in my head now... thanks - I've applied for the new mortgage for after 30/09