Mortgage

mickey2009

Morning. I am moving house. Our house is up for sale. My mortgage deal with NatWest ran out so I got a MIP with first direct. But I would like to clear some debt and switch to first direct before I move house. It may take a while to move house. Can I go to first first and advise I don’t need to borrow as much atm  but when I do eventually sell my house and look to buy another, can I then apply for a bigger mortgage ? 

user1977

If you mean you want to remortgage while your house is on the market, I don't think lenders like that. You also may be storing up problems if there are remortgage-related deeds still in the process of registration during the sale.

mickey2009

So I have a SVR with NatWest at the moment. Would I not be able to remortgage with them , then when I eventually sell my house I can take a new deal out with first direct before? 

Hoenir

Simply apply for the amount you wish to borrow to remortgage. Anything beyond this is irrelevant. 

mickey2009

So it wouldn’t affect me getting a new mortgage in say 6 months because I have already applied for one ?

Hoenir

mickey2009 said:

So it wouldn’t affect me getting a new mortgage in say 6 months because I have already applied for one ?

No reason why it should. The 6 month rule relates to the property itself. 

lfc321

If you take a new fixed deal with NatWest now, you may well need to pay an early repayment charge if you want to take out a mortgage with First Direct on the new house. 

Assuming you want to avoid that, there are three routes that I can see here:

1. Choose a NatWest product that does not have an ERC (eg a tracker rather than fixed rate). Mortgage the new home with First Direct and redeem the NatWest mortgage. 

2. Remortgage with First Direct now, and then port it (+ extra borrowing, if required) to the new house. 

3. Take out a new deal with NatWest now, and then port it (+ extra borrowing, if required) to the new house. 

Which one of these is best will depend on the respective interest rates (both now, and at the point you move, which is less predictable).