Any mortgage officinardos ?

[Levo-Lon]

We are looking at a move...maybe, after yesterday's experience maybe not
I've had this house since 93 and remortgage was in 08 for major extension.
What I was wondering was do you take your mortgage with you or does it have to end then re apply.

We're not spending more,it will be same or less borrowed ,we only have 24k mortgage and this will be just 5k in a few MTHS.
I intend to keep a small mortgage for ease of credit ect plus we can use equity with our Barclays account., So no point stopping that.

We have an old tracker which is .5% above base rate ,these done exist anymore.

So for clarity, we sell for 250k buy house for £250k mortgage has 11 yrs to run unless cleared.

Obviously need to ask Bank but just wondering if anyone knows the legal side pit falls ect.

I don't like change

 

[Adam4868]

Im no expert on this ! But weve done similar before.I think moving the same morgage is called "porting" it.Im guessing the pros and cons are the morgage rate,is there a penalty for your morgage,i.e early repayment charge,less hassle keeping the same one with paperwork etc,fees.

 

[Levo-Lon]

Im no expert on this ! But weve done similar before.I think moving the same morgage is called "porting" it.Im guessing the pros and cons are the morgage rate,is there a penalty for your morgage,i.e early repayment charge,less hassle keeping the same one with paperwork etc,fees.

Hi Adam
No our mortgage can be paid in full anytime, without penalty.
If it can be simply "ported" that would be excellent,as a new mortgage will be a lot dearer with new rates. Very cheap

Ours is a old tracker which you can't get now, .5 above Bank of England base rate

 

[Buck]

when you move you will need to pay off your existing mortgage and take out a new one. The challenge will be seeing if your current lender is willing to port the current terms and rates. As yours is a relatively cheap mortgage they may want you to move to a more expensive product.

Frustratingly, it is usual that they will need you to apply for a new mortgage with the usual affordability checks etc.

 

[sheddy]

Lots of info on MSE
https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

 

[Adam4868]

Why the feck did I think a bank would make it easy....

 

[Pale Rider]

Your age is a critical factor.

If you are much above 50, a mortgage company may not be keen on giving you a new one, or may only offer one for a shorter period, which obviously has an impact on repayments.

You need to be careful about clearing your existing mortgage and leaving yourself in an un-mortgageable position - if there's any possibility you will want another.

It may difficult if you want to change lenders to get a better rate, because the new lender will treat you as a fresh applicant.

 

[alicat]

A mortgage is a legal charge on your house. The default position is that when you sell the house the mortgage is paid off. However, the terms of your mortgage may let you transfer the charge to another property. You need to check the documentation that you got when you took on the mortgage or ask the lender if your mortgage can be ported.

If you need to get a new mortgage you will need to pass the lender's affordability checks. Age is not such a barrier these days and hopefully you can prove you can repay £5k.

These days people seem to use a mortgage broker to find the best deal and help them fill in the affordability forms.

Quick question - if you dont like change, why are you moving?

 

[Pale Rider]

Age is not such a barrier these days and hopefully you can prove you can repay £5k.

I didn't realise he only wanted to borrow £5K on the mortgage.

Isn't that more personal loan territory?

Even if allowed, I also wonder if there's any point in doing it.

There can't be much in the way of tax advantages on such a small sum.

 

[Levo-Lon]

As the outstanding mortgage is under 25k and we have 22k available from our mortgage account for anything we want on the cheap money borrowing side, so shouldn't be an issue plus we have liquidity in premium bonds ect.
Inheritance when probate happens with FinL passing in January.

I was more interested in Can we just switch mortgage to new property, avoid the grubby banks rubbing their hands and taking the pisz with a nice big % hit

 

[Levo-Lon]

I didn't realise he only wanted to borrow £5K on the mortgage.

Isn't that more personal loan territory?

Even if allowed, I also wonder if there's any point in doing it.

There can't be much in the way of tax advantages on such a small sum.

We don't.
The 5k was for if we pay off our 24k, just pay off 19 and then leave the rest for 11yrs to pay
I'm happy to keep 5k just to keep credit good as we have a good mortgage borrowing surplus

 

[Pale Rider]

We don't.
The 5k was for if we pay off our 24k, just pay off 19 and then leave the rest for 11yrs to pay
I'm happy to keep 5k just to keep credit good as we have a good mortgage borrowing surplus

The way to keep your credit rating good is to occasionally borrow and repay.

Deliberately leaving yourself with a monthly repayment could do that.

But you could also do it by regular use of your credit card for some day to day spends.

Occasional other activity will also help, such as taking out a different credit card or applying for a mobile phone contract.

I also wonder why you would worry about it.

You must have worked hard to get yourself reasonably financially well set.

One of the benefits of that is not having to resort to credit in most situations to fund your lifestyle.

Having said that, the need to apply for a mobile phone or other credit contract such as pay TV is a consideration.

But a credit rating for that purpose will be well covered by using your credit card to buy the food shopping or a tank of fuel a few times each year.

 

[Cycleops]

I was more interested in Can we just switch mortgage to new property, avoid the grubby banks rubbing their hands and taking the pisz with a nice big % hit

Unfortunately it's not like a mobile phone number, you can't just transfer it. As @Gunk says you need to pay off the existing on your current property and take out a new one on proposed house.
Interest rates are low so you should get a good rate.

 

[vickster]

Interest rates went down last week. Just talk to your bank

 

[Gunk]

If you are after a low loan to value you can still get a mortgage beyond retirement age. Even interest only.