Moving house

Joe_AW

Hi all, Merry Christmas.

I'm new to MSE although I've been a long time reader.

I wanted to ask me and my partner got a house last December. We have done the house up new bathroom, kitchen windows. Fully gutted the house to a very high quality standard. We bought the house for 178k worth now 235k to 240k. We have knocked walls through etc.

I wanted to ask we have seen a house for 570k. We have the cash to move. If we wanted to port our existing mortgage and use our own cash to fund the difference.

I presume the bank don't have an issue with this as there is no extra exposure to them?

We aim to clear out mortgage within 3 years in full.

Please be kind to us. It's our first house so don't understand fully as we only young couple.

Thanks guys.

AnotherJoe

You can't port a mortgage. You can, if the Ts & Cs allow, port the conditions, eg the mortgage rate and term. That obviously depends on your mortgage, you'll have to read them / ask your lender.

It might not be worth "porting" anyway, you may get a better rate ona new mortgage since your loan to value will be much better, eg same size mortgage in a more expensive house.

There may well be an early redemption fee on your current mortage - which may be relaxed as long as you take out a new mortgage with them. Again, its down to Ts & Cs.

Robin9

We aim to clear out mortgage within 3 years in full.

Please be kind to us. It's our first house so don't understand fully as we only young couple.

Thanks guys.[/QUOTE]

Wow - what sort of income are you on ?

AnotherJoe

One where they should most likely be putting money into pensions instead of paying off mortgage since they must be on 40% + tax rate, and instead are paying much more tax than they need to.

Joe_AW

Hi,

I won't discuss income PA.

However I will say I'm a Managing Director for a large tarmac businesss.

Joe_AW

Hi there,

We take our income via Dividends.

I hope this helps you in helping me.

Joe_AW

Hi there,

I've checked our paperwork and it says we can port our mortgage product.

Thrugelmir

Joe_AW wrote: »

I've checked our paperwork and it says we can port our mortgage product.

What it also says is subject to (i.e. the lenders criteria). Should not be an issue if your affairs are in order.

Joe_AW

All seems OK.

AnotherJoe

Joe_AW wrote: »

Hi there,

We take our income via Dividends.

I hope this helps you in helping me.

You could probably be saving a lot of money by getting financial advice about the best way to structure your pension, unless you are already maxing that out and the surplus is going into the new house.

If you are doing the classic “pay off the mortage as soon as possible” and above all other priorities” because you intend to address those later then it’s most likely not the best idea.

Joe_AW

Hi there.

I have allot of shares in the company I work for. This is our pension.

We will look at advice but just wanted the views of some here first as I know there is allot of experienced people here, so much so more than an financial advisor.

Thanks.