Short term mortgage to move

Pheriche

We have an offset mortgage on our current house. Over the last few years we have been completely offsetting the mortgage with savings and paying nothing. We have now inherited some money and are looking to move. We would like the flexibility to move without selling our existing house straight away. Taking into account the inheritance, savings and existing mortgage, that would leave us needing to borrow about £200k to buy the new house and keep the existing one. We would then do some work on the existing one and sell it within the three year limit to get back the punitive excess stamp duty.

I'm aware of bridging finance, but it seems rather expensive. Also I'm suspicious of financial products sold by companies I've never heard of. So we're considering getting an interest-only mortgage on the new house and paying it off when the current one is sold. Would any lender give us a three year mortgage (on the new house) on those terms, or would we have to take out the mortgage as if we intended keeping it for much longer and then pay an early redemption penalty if there was one? And if we did that would it have any effect on our credit rating?

amnblog

Simple job for a broker. Bridging probably not necessary. No you cannot get a 3 year mortgage.

amanda1024

Can you use the existing offset mortgage (ie by taking the savings out), possibly porting it to the new house

sammyjammy

amanda1024 said:

Can you use the existing offset mortgage (ie by taking the savings out), possibly porting it to the new house

No because they will be retaining the existing house.

Pheriche

amanda1024 said:

Can you use the existing offset mortgage (ie by taking the savings out), possibly porting it to the new house

Thanks for the response. After some digging it looks like we may be allowed to retain the existing offset mortgage on the current house, taking out the offsetting savings and starting to pay the interest, while also taking out a small mortgage on the new one to make up the total.