'Transferring' your mortgage.
I was just wondering, in theory, if anyone had any experience of transferring their mortgage?
By this I mean supposing you had paid 12 years of a 25 year repayment mortgage and moved house from London to Southampton how would this affect the mortgage (eg - would you have to start again from 'Year One')?
Quocunque Jeceris Stabit.
surely this is just buying another house ??? If this is the case and you are keeping your old house then you would have to take out a whole new mortgage. The amount of time you pay that off over obviously affects the cost per month.
Originally Posted by fightingfan
If you are selling your old house then i would guess (especially if you've had it for 12 years) that you would have a truck load of cash in equity which you could use all or part of as a deposit for the new place.
Either way moving house = whole new mortgage but size of mortgage depends on price difference between properties and how much cash you have either from equity on your old place or savings etc....
Rob hannis who posts here is (i believe) a mortgage advisor so might be able to help you some more but that is my understanding. Hopefully im not totally misinformed. I have remortaged on my property before but never moved house so am not aware of the possibility of "transferring" your current mortgage to a new property.
That's if in the contract it's stipulated that the mortgage is portable. Been thinking about my mortgage too actually. I'm certainly not gonna stay on the one I have at the moment with the payments I have anyway.
Most if not all high street lenders allow you to port your mortgage from one property to another for just basic admin fees, allowing you to keep a fixed/discounted deal if that is what you have. If you have remained with the same lender for those 12 years, and not had your mortgage reviewed in that time, then it is time to shop around.
Avoid high street lenders, and brokers that charge stupid fees.
If you need to borrow anymore, that will be arranged on a new deal and you will have 2 sub-accounts, that being 1 charge on the property and two different deals.
I am a fully qualified advisor myself, and deal in sub prime and heavy adverse credit lending.
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If you're going through hell, keep going!
Why the fuck would you want to go to Southampton......At any cost?
Although seriously, Mattfinn calls it right.
Depending on how you wanna do it! You can start from year one if you want to. Presumably you would have good equity in the house so may be you can put a bit more down and make the new mortgage smaller.
Having said that if you need the dosh for something else then start again.
I have had to do that 2 or 3 times. It was the cheapest way to borrow money for my businesses at the time. Means I still have a big mortgage but it helped to grow the businesses that pays for it.
If you are looking for a new mortgage deal, best get in quick. By all accounts we will all be paying for the flooded crops, contaminated meat and shit summer season business on the coast. And that will mean good deals will be scarce and mortgage rates will go up (again)!
Just about correct from everyone, most mortgages are 'portable' meaning you can transfer them from one house to another providing that house is suitable security for the lender and fits with their lending policy. (so you will probably have to get a survey done and pay some admin fees depending on the lender, size of mortgage etc)
That is assuming you are keeping things like for like eg keeping the ammount of loan outstanding. If you borrow more then that deal will be on whatever rate your lender is offering at the moment.
However if you are 12yrs into your mortgage chances are you will probably be on the lenders standard variable rate which won't be that favourable (somewhere between 6-8% depending on the lender).
So about right what matfinn said, time to look around for a new deal really to see if it's best to switch or not. Depending on the size of the mortgage and your status it could be best to get a new deal or stick with your existing lender. If you do go for a new deal there is no need to start on 25 yrs again, can be anywhere from 5-40yrs if you want,
If you need any advice pm or email email@example.com I'll gladly help point you in the right direction.