Confused on how to fund next house purchase

Gambler

I have a 2 year fix with C&G that is due to end on 31st May 2008 but we have just sold our house and have at last found one to buy.

Just confused as the best (and cheapest) way on how to finance the new purchase.

C&G don't seem to have any competitive rates but if I did stay with them I would have to pay a new product fee plus £400 valuation fee from what I have just read on their website.

If I moved to first direct for instance on a much better rate I would have penalty charges of £1K with C&G but would I have to pay a valuation fee for my current house and then a further valuation for the new house when we move in the next few months?

I'm a bit stuck on what to do here and would appreciate any advice as I have give my solicitor details of my mortgage etc.

Thanks

InMyDreams

Gambler wrote: »

that is due to end on 31st May 3008

:eek: That's some fix!

Gambler wrote: »

but we have just sold our house and have at last found one to buy.

Just confused as the best (and cheapest) way on how to finance the new purchase.

C&G don't seem to have any competitive rates but if I did stay with them I would have to pay a new product fee plus £400 valuation fee from what I have just read on their website.

If I moved to first direct for instance on a much better rate I would have penalty charges of £1K with C&G but would I have to pay a valuation fee for my current house and then a further valuation for the new house when we move in the next few months?

I'm a bit stuck on what to do here and would appreciate any advice as I have give my solicitor details of my mortgage etc.

Thanks

Are you not going to have to pay the penalty anyway? When you say 'sold' do you mean accepted an offer or exchanged contracts? Could you not just delay completion until after May? Then just take out a brand new product on your new property? If you've only just found your new property, chances are you won't be completing on that until after May anyway.

Gambler

InMyDreams wrote: »

:eek: That's some fix!

oops typo !!




Are you not going to have to pay the penalty anyway? When you say 'sold' do you mean accepted an offer or exchanged contracts? Could you not just delay completion until after May? Then just take out a brand new product on your new property? If you've only just found your new property, chances are you won't be completing on that until after May anyway.

I mean offers accepted. Might be best to book the FD mortgage then as I think you get 6 months to use it?

Gambler

Looks like I could be moving before the 31st May as our chain consists of:

FTB - Us - New Home - Our vendor is buying an empty house

Have just had another look at the C&G website as I really want to avoid paying the £1K penalty if I can.

Could I just move to the lifetime tracker at 5.94% once the completion date is set. The booking fee is only £99 with no early redemption charges and I could then look at my options once I have moved? Just seems to be the least hassle option in my situation. Just wish I'd thought of it earlier as could have booked it before the base rate fell.

Appreciate any advice as expecting a call back from First direct and I don't want to go making a rash decision.

homer_j_3

Check to see if your mortgage is portable. I think that the C&G do consider but you will need to check specifically to your product.

If it is portable, you would be best applying to transfer or 'port' the deal on to the new property. If you need to borrow, borrow on a fee free, no tie in deal - like the variable rate. If you can do this then when it comes to end of may then you can look to remortgage.

You will be treated like a new customer for underwriting purposes when you apply to port your mortgage and you will have to pay a valuation fee but it will save you the 1k Early Repayment Charges. When you come to remortgage, you will just need to find a free val option if you do not want to pay for another val.

Gambler

homer_j wrote: »

Check to see if your mortgage is portable. I think that the C&G do consider but you will need to check specifically to your product.

If it is portable, you would be best applying to transfer or 'port' the deal on to the new property. If you need to borrow, borrow on a fee free, no tie in deal - like the variable rate. If you can do this then when it comes to end of may then you can look to remortgage.

You will be treated like a new customer for underwriting purposes when you apply to port your mortgage and you will have to pay a valuation fee but it will save you the 1k Early Repayment Charges. When you come to remortgage, you will just need to find a free val option if you do not want to pay for another val.

Thanks. IIRC I can avoid the ERC if I take up another mortgage with C&G for the new property which is why I am thinking the life time tracker. The valuation fee is £400. I've noticed from shopping aropund that it seems to be a lot cheaper (in fees) to remortgage than move house. I think this way would be less hassle too, especially as it looks like I have missed out on the FD 4.99% deal although awaiting a call back from them this week.

Of course I'm hopeful of completing before the end of May but as with all house moves that is no gimme !!

Gambler

Just checked with my local C&G branch manager. My current deal can be ported at the same rate till 31st May.

She is going to look at some fixed rates and come back to me with some 'deals'.

Why do I get the feeling they will be exactly as stated on the website!

homer_j_3

you don't want any other deals - you want the deal you have. If you need to borrow more, you want the variable rate or a rate which attracts no setup fees or Early repayment charges.

Do not get tied into another deal with them without seeking professional advice as their may be more competitive rates that can recoup the 1k if you are going to look at anything else.

Gambler

homer_j wrote: »

you don't want any other deals - you want the deal you have. If you need to borrow more, you want the variable rate or a rate which attracts no setup fees or Early repayment charges.

Do not get tied into another deal with them without seeking professional advice as their may be more competitive rates that can recoup the 1k if you are going to look at anything else.

Thanks homer. I already had a callback logged with First Direct yesterday before they pulled the 4.99% fix so I'm keeping my fingers crossed I can still get that reserved until the 1st June for when the C&G fix ends. (and hopefully I will have moved house by then).

I did mention the FD deal to the branch manager so if she can anywhere close I'd be happy to stay after the 31st May. Somehow I doubt it though !

Gambler

Gambler wrote: »

I did mention the FD deal to the branch manager so if she can anywhere close I'd be happy to stay after the 31st May. Somehow I doubt it though !

Blimey they are so umcompetitive it's not true :rolleyes: .

Rather than break into my cash ISA (yet) I do need an extra £30K so I'll go with their SVR as the full term tracker is for a minimum £50.

Port the mortgage to the new property and then remortgage at the end of May.

Gambler

Gambler wrote: »

Blimey they are so umcompetitive it's not true :rolleyes: .

Rather than break into my cash ISA (yet) I do need an extra £30K so I'll go with their SVR as the full term tracker is for a minimum £50.

Port the mortgage to the new property and then remortgage at the end of May.

Well the house we wanted to buy fell through and we had an offer accepted on another property yesterday.

I'm looking for a 5 year fix so would I be better off remortgaging now on my currenty property (fix ends 31st May) and then porting to the new house when I move?

Sorry but it's still confusing me