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Trying to get some advice before selling house about mortgage.
fletcher1985
Posts: 458 Forumite
Hi everyone and thanks for taking the time to read this.
Ok our situation is I have a 5 year fixed mortgage at 2.79% at 80k which I can port.
We are looking to sell in the next 6 months to get a bit bigger house. We have been saving like crazy and by the time we put the house on the market we should have at least 15k spare. So my question is should I pay 15k off my current mortgage or is it possible when I get a second mortgage to pay that 15k like a deposit to lower what I would need to barrow?
Ok our situation is I have a 5 year fixed mortgage at 2.79% at 80k which I can port.
We are looking to sell in the next 6 months to get a bit bigger house. We have been saving like crazy and by the time we put the house on the market we should have at least 15k spare. So my question is should I pay 15k off my current mortgage or is it possible when I get a second mortgage to pay that 15k like a deposit to lower what I would need to barrow?
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Comments
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You would need to see if there are redemption penalties if you pay some off early. In any case I would wait to give yourself some flexibility, you may find a new home that needs some work. With £15k in your pocket you could transfer the mortgage and use the money to update.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Oh yeah I forgot about the 10k limit to over pay.
But is it possible when I get the new mortgage to put 10k as a deposit?0 -
Any mortgage you take out now is going to be at a rate higher than 2.79%.
You would be better maxing out the 2.79% and putting money towards the extra so you take out less at the higher rate.I am a Mortgage AdviserYou 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.0 -
But when we move we will be porting our mortgage so I'm guessing we will have two mortgags? ACG said:Any mortgage you take out now is going to be at a rate higher than 2.79%.
You would be better maxing out the 2.79% and putting money towards the extra so you take out less at the higher rate.
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In essence you will have 2 parts to your mortgage. If we assume you ultimately end up with a £180k mortgage that would either be:
1) £80k @ 2.79%
2) £100k @ maybe 5%.
or
1) £65k @ 2.79%
2) £115k @ maybe 5%.
It is better to have a smaller amount on the top up as that will very likely be higher than what you currently have now.I am a Mortgage AdviserYou 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.0 -
That was my question about when I got the second part of the mortgage.
My current 80k mortgage don't over pay anything more.
Second part 100k but could I say I don't need 100k and put a 15k like a deposit? And take the mortgage down to 85k?0 -
Yes that is what you can do.
You might get 4/5% in savings accounts now0 -
Great thanks I think that's what I will do. I got it in a savings account at the highest rate.0
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