remortgage and moving

lecs

Hello everyone. I have a mortgage offer from Barclays, I am remortgaging from another lender. It is a five-year fixed rate and I have already accepted the offer, and the solicitor has been engaged. The offer comes with free legals so it's Barclays' nominated solicitor firm.

Completion date will be on or after 31 July, when my current fixed rate expires, to avoid paying ERC. I borrowed £30K extra for renovation and put the term back to 25 years (from 19). The new mortgage is portable. However, I have found a property I really like and I am now thinking of selling my current property and buying that one. I could use the £30K for stamp duty and to pay the estate agent fees to sell, then use the rest of the funds to overpay. The new place doesn't need renovation.

Would this work? and if yes how would I go about it? Would perhaps Barclays change the property information on the existing offer - assuming I could time completion on the new property on or after 1 August? LTV is the same, amount borrowed the same.

TA

kingstreet

So you want to change a remortgage application to a purchase application?

You need to ask the lender concerned. The chances of anyone else having done this recently are probably slim and none.

lecs

I don't know how to go about it... not sure if that kind of change would be an option given the current stage (remortgage approved and accepted, but not completed yet).

I believe I was thinking more like remortgage first, since it's portable - then ask right after that to port it to the new property?

kingstreet

You can't port a 'mortgage' as in transfer a mortgage from one property to another!

If you qualify* for a new mortgage on the new property, the lender may permit you to move the rate from the old mortgage to the new one. Any increased borrowing would be offered on one of the lender's products current at the time.

*Status, credit and affordability checks as well as the suitability of the property.

Personally, I'd just drop the idea altogether and pick the right lender/product for the move.

If you wish to investigate this further, you need to speak to your lender to establish how to proceed.