New house new mortgage?

Retrievermomma31

Hi all

I'm hoping to sell my house soon and so I'll need a new mortgage.

My new property won't cost more than my current one and may even be less, which will mean less of a mortgage.

My credit rating isn't that great, in fact, according to Experian, it's in the middle of 'Poor'.

When I go to buy my new house what exactly is the process? My understanding is this:

Sell - Pay off old mortgage - Apply for new mortgage (with same credit checks etc)

Is this correct?

My mortgage is with Yorkshire Building Society.



Thanks!

marksoton

Have you looked into porting your existing mortgage?

Retrievermomma31

marksoton wrote: »

Have you looked into porting your existing mortgage?

Just had a quick google

If I was able to do that would I have to pay early exit fees on my product as I'm tied in for 5 years and have done 1
Or is this something only YBS can tell me?

hazyjo

I'm with YBS and have ported mortgages in the past (pretty sure while in a deal).


Ask them - only way to be sure.


Usually it's possible for the same or more, but not usually for a lower mortgage.


Jx

eddddy

Retrievermomma31 wrote: »

My new property won't cost more than my current one and may even be less, which will mean less of a mortgage.

My credit rating isn't that great, in fact, according to Experian, it's in the middle of 'Poor'.

Retrievermomma31 wrote: »

Just had a quick google

If I was able to do that would I have to pay early exit fees on my product as I'm tied in for 5 years and have done 1
Or is this something only YBS can tell me?

The term "porting your mortgage" can be a little misleading.

Essentially it means applying for a new mortgage, but carrying over the product features of the previous mortgage (so you avoid early exit fees).


BUT... you will be reassessed against the current lending criteria, affordability etc.

If the criteria have got tougher and/or your financial situation has got worse, your lender may not offer you a new mortgage - perhaps not even a smaller, cheaper mortgage.

If you google "Mortgage Prisoner", you'll find lots of stuff about this. Here's a couple of examples:

http://www.moneysavingexpert.com/news/mortgages/2016/05/regulator-acknowledges-mortgage-prisoner-problem-as-martin-meets-george-osborne-

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11921868/Lender-lunacy-Halifax-says-we-cant-afford-a-cheaper-mortgage.html