Downsizing

HMS

Hi All

As I said in another post, I've returned to being a student. I have a mortgage with Northern Rock, which is fixed for another 4 years. I'm planning on moving closer to the uni and, fortunately, will be able to move to a bigger, but CHEAPER house in the process. I can't seem to find any info on the web about moving to a cheaper house, only moving to a more expensive house.

How does that work? Will the mortgage company be happy for me to move to a cheaper house? Any pitfalls to be thinking about?

dubsey

We downsized our house and subsequently our mortgage on our last house/this house. We had to apply for the new mortgage on the new property, but ours wasn't fixed and was with First Direct so they may have different criteria.

Have you asked Northern Rock what the procedure would be IF you decided to do this?

HMS

dubsey wrote: »

We downsized our house and subsequently our mortgage on our last house/this house. We had to apply for the new mortgage on the new property, but ours wasn't fixed and was with First Direct so they may have different criteria.

Have you asked Northern Rock what the procedure would be IF you decided to do this?

Nope, I think you have answered my question. Downsize it is!

firesidemaid

NR may let you transfer the mortgage at the same rate, but then again you may have to cancel your fixed rate and start again and may be charged a penalty clause for it.

NR are into making/clawing back money at the moment, and if you borrow less (ie. pay them less interest) it may be a problem.

check you original paperwork for terms and conditions.

HMS

Thanks firesidemaid.

I think I will give them a call. I can understand about 80% of my original paperwork.