Moving house - porting - fees

mouthscradle

This might be a stupid question, sorry...

We've got a mortgage with First Direct and are planning to port it and take out additional borrowing. We have an agreement in principle from them for the amount needed. Just trying to sort out our savings so that they're earning interest instead of just sitting in our current account earning nothing. We have enough in savings to pay for the costs of the move (estate agent, stamp duty, conveyancing, removals, etc).

We already have TSB current accounts earning us interest on £1500 each. But the other savings accounts give a lower interest rate than our mortgage interest rate. So was thinking of overpaying with a load of our savings (I've checked, would be penalty free).

What would happen then when we moved? Would we need to have any savings readily available prior to the move, as a deposit to pass up the chain on exchange for example, or to pay stamp duty and legal costs. Or could all of these things just be taken from the equity on completion day?

Never moved since getting our first mortgage, so not sure how the process works around the cash/equity side of things.

Thanks :beer:

Thrugelmir

You'll need to find the 10% deposit required upon exchange of contracts. Part of this will come from the deposit paid on your existing property. Your solicitor may be able to negotiate a lower % than 10. Though I wouldn't bank on this.

The remainder of the purchase price , selling fees, buying fees, stamp duty etc can be paid on completion.

mouthscradle

Thank you. Will need to put it into easy access savings then. Good job I didn't just lob it all into the mortgage account like I almost did earlier :rotfl:

mouthscradle

Am I right in thinking that savings accounts are fine to apply for prior to mortgage applications but current accounts not so much?