Short term mortgage

timthebin

Morning all,

I was hoping someone could help me with a plan to buy our dream home with my wife .

A little about my situation - my current home is on the market to sell but I'm in the fortunate position to be able to buy another property without selling; so I don't have to be involved in a chain.

The property I want to move to is in a small village where supply is low and most houses are sold STC before they even get on rightmove and chains put you at a big disadvantage.

My current mortgage still has 18 months to run and there's a hefty Early Repayment Charge unless I port (let's assume both properties are roughly the same value).

My plan - as I can put a deposit down on a new house I want to take a mortgage with no fees or ERCs attached to secure it (that would leave me with 2 mortgages temporarily, which is fine).

Then when my current property is sold I want to port my mortgage (to evade the ERC) onto my new home.

My questions are -

1) Can you see any issue with taking out this new mortgage with the idea to repay the whole balance within a few months (even though it's designed as a 2/5yr tracker)??

2) Can you see any issue with porting an existing mortgage to a house you already own?

Many thanks for you time and help:A.

Tim

anselld

timthebin wrote: »

2) Can you see any issue with porting an existing mortgage to a house you already own?

Check terms with your Mortgage Co but this is not usually allowed.

amnblog

Can you not port what you have to the new property now and top up to borrow all you need against new property (leaving property one mortgage fee).


You can then pay the extra off after the sale.

timthebin

Thanks both,

I will check with my mortgage company to see if I can port to another home I own.

Amnblog - I'm afraid I haven't sold my existing house yet, so I can't port unless I'm missing something?

timthebin

Amnblog I think I now understand.

Unfortunately I don't have quite enough to fully pay off either mortgage (about 40k short). Good idea but one way or another I'd need 2 mortgages for the short term.

Unless my house gets sold before I complete on the new property...