Mortgage options …

SarahB16

Whiterose23 said:

SarahB16 said:

Mark_d said:

The service charge I pay on my flat is 1/3 of what I pay on my (interest only) mortgage.  Opting for a house rather than a flat means you could get a much better property/better area for the same cost.  So is downsizing to a flat a good idea?

Mark_d raises a similar point to what I was going to make.  I know you say the cost of the houses are greater than the flat you are interested in but do check what the service charges will be for the flat you are interested in and perhaps also check there is a satisfactory sinking fund already in place too.  Enquire what people think of the management company too.  

Stairlifts are a possibility for houses so don't let that be a factor to deter you from choosing a house but of course it is your choice.  

Hi thanks for your comment. A house in the area I want to move to would be more than £300k, and I want to clear my mortgage and reduce my outgoings as much as I can, hence the flat preference, rather than it being anything to do with future mobility.

Hi, I see re mobility but do still check on the service charges point that I made in my earlier post.  

Whiterose23

Does anyone have any ideas re funding this
move? Is porting a good option? Im
with Santander and I know they support this.

youth_leader

Have you seen a mortgage advisor yet, surely they are the ones to answer this question?

Whiterose23

youth_leader said:

Have you seen a mortgage advisor yet, surely they are the ones to answer this question?

Not yet no. I’m looking for others with similar knowledge/experience first. And to find out if anyone knows of any other options.

Bigphil1474

Porting the mortgage is basically just keeping the same mortgage deal but just on a different property. There's some info here : 

https://www.moneysavingexpert.com/mortgages/porting-your-mortgage/

As an example - if your current house is worth £300k and your mortgage is £70k you have £230k equity. You sell that house and buy a property for £250k, the mortgage will still be £70k and you pay the £180k balance from the sale of the property leaving you with £50k equity spare. Depending on the terms of the mortgage, you can overpay the mortgage with that money.

poseidon1

Whiterose23 said:

youth_leader said:

Have you seen a mortgage advisor yet, surely they are the ones to answer this question?

Not yet no. I’m looking for others with similar knowledge/experience first. And to find out if anyone knows of any other options.

Don't know what your credit rating is like, but in your shoes might look at a unsecured personal loan for the £20k.

 Much faster to arrange, typically no arrangement fees, no solicitor involvement, much lower criteria for approval.

Just done a soft quote with Lloyds who I bank with, £20k available at 6.7% over 5 years at £ 391 p.m.

Bigphil1474

It's difficult to get an unsecured personal loan for a house purchase, unless you lie when applying which isn't recommended. 

Whiterose23

Bigphil1474 said:

Porting the mortgage is basically just keeping the same mortgage deal but just on a different property. There's some info here : 

https://www.moneysavingexpert.com/mortgages/porting-your-mortgage/

As an example - if your current house is worth £300k and your mortgage is £70k you have £230k equity. You sell that house and buy a property for £250k, the mortgage will still be £70k and you pay the £180k balance from the sale of the property leaving you with £50k equity spare. Depending on the terms of the mortgage, you can overpay the mortgage with that money.

I can’t quite get my head around this.
So for example, my property sells for £240k. I have a £59k mortgage.
That means the equity is £181k. New property is £215k, which would leave a shortfall of £34k, and I still have a £59k mortgage. 

So I would essentially only need to put down £156k to continue with the mortgage as it stands (ported). Leaving me with £25k which I could then use to reduce the mortgage, dependent on how much each year I’m allowed to pay off? 

ReadySteadyPop

Whiterose23 said:

Hope someone can advise. I’m planning to sell up and move to a flat in a different area of the country but may need a very small mortgage to do so.
I’m 60 years old and want to clear my current mortgage but the flats I like and in the areas I want to live are more expensive than I first thought so I may need a loan of around £20,000, for example I expect to have around £180,000 equity once my house is sold but need £200k to secure the right property. I do not want to move into a retirement property as my son will be living with me. 
I’m not sure at this stage whether I would continue to work for my current employer remotely or find a new part time position once I move.
I’m looking into the best way to achieve this and my thoughts are:

Use a lump sum from one of my pensions (I could release around £30k but this would impact my pension later on)

Look at getting a small mortgage to make up the difference (such as an RIO mortgage)

Are there any other ways I could achieve this?

Thanks

You shouldn`t make assumptions about how much a house will sell for, or if it will even sell in this market in my opinion, if you want to move sell the house first, rent somewhere and look at your options for buying then.

silvercar

Whiterose23 said:

Bigphil1474 said:

Porting the mortgage is basically just keeping the same mortgage deal but just on a different property. There's some info here : 

https://www.moneysavingexpert.com/mortgages/porting-your-mortgage/

As an example - if your current house is worth £300k and your mortgage is £70k you have £230k equity. You sell that house and buy a property for £250k, the mortgage will still be £70k and you pay the £180k balance from the sale of the property leaving you with £50k equity spare. Depending on the terms of the mortgage, you can overpay the mortgage with that money.

I can’t quite get my head around this.
So for example, my property sells for £240k. I have a £59k mortgage.
That means the equity is £181k. New property is £215k, which would leave a shortfall of £34k, and I still have a £59k mortgage. 

So I would essentially only need to put down £156k to continue with the mortgage as it stands (ported). Leaving me with £25k which I could then use to reduce the mortgage, dependent on how much each year I’m allowed to pay off? 

Not quite.

Property sales for £240k, clearing the 59k mortgage, giving you £181k equity.
new property is £215k, 215-181=34k. You don’t have the 59k mortgage, that’s been repaid from the sale of the existing property. So you need 34k plus selling and buying costs, you can ask for more if you wish. How much your lender will give you in a mortgage depends on a number of things including your income and the new property value. All porting does is allow you to keep the same deal you have now.