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Anything else to consider?
ERCs
Lender might let you 'port' though. Depends on the figures involved and whether they would lend on the new property.
Howard-
ERCs
Lender might let you 'port' though. Depends on the figures involved and whether they would lend on the new property.
These mortgages are portable. The only* fee would be an arrangement fee (£1k) for an additional mortgage to cover any difference.
In case it's useful let's take an e.g.
Current House = 400k
Mortgage = 300k
New House = 500kThat means we'd need an extra 100k to buy New House.
Potential issues I see:
- Affordability criteria - we're no longer suitable to repay 400k (300+100) so they, nor anyone else will lend us the 100k. But if we're moving in year 3 or 4 we should know this and then wouldn't bother moving.
- Valuation - New House ≠ 500k and they won't port or lend the extra 100k. That is something we may not know until we're quite far down the road, and would prevent us from selling Current House before looking for New House... or thinking it through more, could they use this as an excuse to prevent us porting it? i.e. saying that New House is actually worth <300k
*we think - hence me asking in case people have experienced any surprise fees.
- Affordability criteria - we're no longer suitable to repay 400k (300+100) so they, nor anyone else will lend us the 100k. But if we're moving in year 3 or 4 we should know this and then wouldn't bother moving.
hugo7
Has anyone moved halfway through a fixed term? If so what's the actual process?
Ours is expiring and our mortgage broker has found us a portable 5yr @ 1.24% with the same lender (which is better than their 3yr). For a number of reasons we want to go for the 5yr, but may move in 2-4yrs.
Is it just a case of moving our existing mortgage and then taking out a new one for the balance amount and period? Anything else to consider?
Cheers.