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    • Twin mum
    • By Twin mum 13th Apr 18, 8:57 AM
    • 1Posts
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    Twin mum
    buying new house with lower value than current house and using existing mortgage for renovation?
    • #1
    • 13th Apr 18, 8:57 AM
    buying new house with lower value than current house and using existing mortgage for renovation? 13th Apr 18 at 8:57 AM
    Hi everyone
    I'm new here. Just started marketing our house for sale.
    We are hoping to sell for around 575-550k with a mortgage of 260k.
    Our lender has said we could port our mortgage to new house or pay early redemption fee of 3% (mortgage deal expires dec 2019).

    We are looking to buy a house for around 350k which would need about 100k worth of work, and by adding another bedroom and reconfiguring / renovating throughout hoping to get to 450k min market value.

    Could we keep the same 264k mortgage for new house and use some of our profit to do up the house, and then reduce our mortgage with leftover profit?

    Ultimately we want a smaller mortgage of around 170-200k but because the new house is only worth 350k before the renovations, we're not sure if we could port our mortgage in this way?

    Any general advice welcomed- just looking for advice in principal as realise the specific terms of the mortgage would be dependent on income/ltv etc etc.

    Thanks so much!
Page 1
    • ACG
    • By ACG 13th Apr 18, 9:01 AM
    • 17,946 Posts
    • 9,730 Thanks
    ACG
    • #2
    • 13th Apr 18, 9:01 AM
    • #2
    • 13th Apr 18, 9:01 AM
    You will need to speak to the lender, but in theory it should be possible.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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