Paying off a mortgage before starting a new one

roscoe3

Hi,

It's possible that we may be selling our house and moving out into rented accom before we purchase a new house.
I guess this means we pay off our mortgage and then a couple of months later we need to start all over again appying for a new mortgage etc.

Just wondering if there's anything I need to be wary/cautious of by going down this route. We have a very good credit score etc but wondering if we would be seen as 'new' to the mortgage market and therefore subject to more stringent checks, reduced amount available to borrow etc.

I can't forsee any issue (am aware of the charge of paying off the mortgage early) but would appreciate any advice that we may be overlooking something obvious/not so obvious.

Cheers in advance.

ambioni

Well you wouldn't be classed as a first time buyer...I think you have to have been without a mortgage for 3 years before you can become an FTB again. Assuming your credit score is good and you have a decent deposit then there's no reason why you should face more stringent checks....having a big deposit (>25%) will make you attractive to lenders and going through a broker will also spare you a direct interrogation by a lender's mortgage adviser

RichardTheComic

A few potential things. If you already have a mortgage, and it's on a good rate, having a void period may mean that you can't move (port) it to a new home.

If you have an early repayment charge (i.e. you're locked into a fixed rate or special deal period) then you'd pay this fee, where as if you sold and bought somewhere new at the same time most lenders wouldn't charge it.