Mortgage Exit fees - bitter pil to swallow

swishy87

People are so rude on here! I don't see why sarciness needs to come into answering someone's question!

kingstreet

sillysladey wrote: »

Thanks all, I'm not too familiar with porting a mortgage, but certainly something we will look into. any school in the area is better than the one he is currently faced with, obviously no money in the world would be too much for him to have the best education I can get for him, but haggling/ducking and diving is what gets us through the rough times! thank you all for your comments.

Porting the rate, not the mortgage.

You would need your existing lender to lend the amount you need, then you transfer the rate from the old mortgage to the new one to avoid the ERP. Any increase in the borrowing can be taken on one of the lender's current products.

However, if, as you are suggesting, your current lender won't lend the amount you require, this would be a non-starter as you are making a new mortgage application like any other borrower and need to pass the lender's criteria and affordability requirements.

marksoton

swishy87 wrote: »

People are so rude on here! I don't see why sarciness needs to come into answering someone's question!

No. They're ( generally ) honest and factual.

Let's leave sugar coating and bows to Thorntons hey...?

sillysladey

Zzzzzzz.... Bore off

gettingtheresometime

I'm assuming that the new house will be in the catchment area for the preferred school but have you looked at the criteria for actually getting him into that school?


There's a school by me that literally backs onto an estate but children from that estate aren't automatically guaranteed a place in that school (which I agree is daft).

kingstreet

Dead thread walking.

saajan_12

As mentioned, best option would be to port the deal to another property and apply for another mortgage for the balance. Note :
-> you will need the current lender's consent to port
-> may have an additional survey if both lenders want to do their own
-> you'd need to find another mortgage provider willing to lend the balance needed
-> one woudl need to be happy taking a second charge (not sure how this works exactly

Another option to potentially soften the exit fee: Does your current lender allow you to overpay on some of your mortgage penalty free? You could pay as much as you can now, so that when you actually sell, you're paying back less. Could lower the exit fee slightly if its calculated as a percentage of the amount paid off early. Note:
-> Make sure you have enough savings to pay legal fees, surveys, removals costs.

Tygermoth

Please check the thread date - as Kingstreet has mentioned this is a necro thread!