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Fall onto variable rate or take out new fixed rate pre-house move..?
TCW85
Posts: 17 Forumite
Hi all,
I'm in a position where I'm about to sell my current house to a family member who wants to go on to rent it out.
My current fixed rate term on my mortgage ends at the end of July where I will fall onto a higher standard interest rate.
The new build house I'm looking to buy won't be ready for a few months so I have the option to either take out a new fixed rate and port it across when the time is right, taking a mortgage that is right for my new property but not necessarily the best on my current.. Or I sell my current house when my fixed rate ends and then take out a fresh mortgage when the time is right on the new house.
My question is will it be any harder to get approved for a mortgage if coming from rental than either porting or remortgaging, or does it make little difference?
I appreciate that whilst renting I wont be paying off any mortgage balance so would not benefit in this respect but hopefully this would be only a couple of months or so anyway..
Any advice or experience appreciated..
I'm in a position where I'm about to sell my current house to a family member who wants to go on to rent it out.
My current fixed rate term on my mortgage ends at the end of July where I will fall onto a higher standard interest rate.
The new build house I'm looking to buy won't be ready for a few months so I have the option to either take out a new fixed rate and port it across when the time is right, taking a mortgage that is right for my new property but not necessarily the best on my current.. Or I sell my current house when my fixed rate ends and then take out a fresh mortgage when the time is right on the new house.
My question is will it be any harder to get approved for a mortgage if coming from rental than either porting or remortgaging, or does it make little difference?
I appreciate that whilst renting I wont be paying off any mortgage balance so would not benefit in this respect but hopefully this would be only a couple of months or so anyway..
Any advice or experience appreciated..
0
Comments
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Can you not just move to a tracker temporarily? That would give you a good rate (very good currently), and they usually don't have any ERC or fixed terms. I moved to tracker back in October when my house was about to go on the market, and then when the sale completed two weeks ago I had no ERC and for the last few months the payments were very good.
This way you can get a new mortgage when you get the new house, and it will definitely be right for you.1 -
PJBRFC said:Can you not just move to a tracker temporarily? That would give you a good rate (very good currently), and they usually don't have any ERC or fixed terms. I moved to tracker back in October when my house was about to go on the market, and then when the sale completed two weeks ago I had no ERC and for the last few months the payments were very good.
This way you can get a new mortgage when you get the new house, and it will definitely be right for you.
Thanks, I will have a look into this!0 -
Would you be renting your current property from the new owner or a different property?0
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From the new owner. The cost of which negligible. It's more a question of whether being a non-mortgage holder would make it more difficult for me to get accepted on a new mortgage when the time is right..Slithery said:Would you be renting your current property from the new owner or a different property?0 -
If the new owner needs a mortgage then renting from them might not be possible.
BtL mortgages don't usually allow you to let the property to family.0
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