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Second mortgage to purchase a new house
Rover7895
Posts: 31 Forumite
I took out my first mortgage of £92,000 18 months ago to purchase a £112,000 house. It's a 7 year fixed term. We kind of rushed in to purchasing this house due to circumstances beyond our control.
Since then, my Mother died and I've just sold her house and inherited a total of £192,000.
We aren't happy where we are currently living and want to move as soon as possible. I'm aware that I will have to pay the mortgage company just over £6,000 to close the mortgage once we sell our house.
The question I'm asking is.. Is it best to put my house on the market, wait for an offer and then put an offer down for a new house? (Being in a chain isn't something I've experienced before).
Or, would it be possible to apply for a second mortgage of around £30-40,000 so we can move in to a new house and then sell our house, paying off the original mortgage in the process?
Either way, I'm looking to use around £160,000 of the inheritance to purchase an house of around £200,000.
Since then, my Mother died and I've just sold her house and inherited a total of £192,000.
We aren't happy where we are currently living and want to move as soon as possible. I'm aware that I will have to pay the mortgage company just over £6,000 to close the mortgage once we sell our house.
The question I'm asking is.. Is it best to put my house on the market, wait for an offer and then put an offer down for a new house? (Being in a chain isn't something I've experienced before).
Or, would it be possible to apply for a second mortgage of around £30-40,000 so we can move in to a new house and then sell our house, paying off the original mortgage in the process?
Either way, I'm looking to use around £160,000 of the inheritance to purchase an house of around £200,000.
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Comments
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@rover7895 It is possible in principle at that low LTV, as long as the affordability numbers stack up with a property in the background.
Is the current 7-year fix not portable?I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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No afraid not. It's 7% early repayment charge until Sept 2022 and then 6% and so on.K_S said:@rover7895 It is possible in principle at that low LTV, as long as the affordability numbers stack up with a property in the background.
Is the current 7-year fix not portable?0 -
Surprising that your existing lender won't port. At the very least overpay by whatever you are allowed.Rover7895 said:
No afraid not. It's 7% early repayment charge until Sept 2022 and then 6% and so on.K_S said:@rover7895 It is possible in principle at that low LTV, as long as the affordability numbers stack up with a property in the background.
Is the current 7-year fix not portable?0
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