Mortgage and borrowing more

ants83

ants83

ants83

Soldato
Joined
29 Jun 2004
Posts
2,587
Hi all.
Looking at moving house and have a few questions.
My current house is worth 200k and I have 150k left on the mortgage . I have a mortgage I can port .
The house I'm looking at is around 220k so I'd need an extra 20k loan.
Could this be done ? What would be the best way ?
I know an mortgage advisor would be my best bet but just wanted some general info from those who know more than me.
Cheers all.
 
Anything can be done just depends on your appetite to pay interest. If you can port the mortgage surely asking your current provider should be your first call?
 
I wouldn't bother with a Mortgage Advisor at the moment, go to your current lender 1st and see if it's possible, if not then go to an advisor as you may have to change products/lenders.
 
ants83 said:
Hi all.
Looking at moving house and have a few questions.
My current house is worth 200k and I have 150k left on the mortgage . I have a mortgage I can port .
The house I'm looking at is around 220k so I'd need an extra 20k loan.
Could this be done ? What would be the best way ?
I know an mortgage advisor would be my best bet but just wanted some general info from those who know more than me.
Cheers all.
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are you moving out of choice or because you need to?

the fees you will pay will be ridiculous to do such a small jump. i'd avoid if it's possible.

no talking about mortgage fees but solicitor and stamp duty, etc.
 
Not everyone moves house to 'upgrade', either way the reason is irrelevant, the OP wants to move. Solicitors fees and stamp duty is very much known quantities.

If the mortgage is portable then there should be no exit fees if you stick with the current lender. I assume you are in a fixed period hence the question, talk to your current lender. Unless your current lender is not very competitive any exit fee normally outweighs any savings made by switching. A quick search on money supermarket will confirm.

If you port your mortgage the extra borrowing is treated as a second mortgage and will have its own fixed period (if you go for that) and end dates etc. You'll need to manage them individually. Given the small amount of borrowing it's unlikely a product fee mortgage will be cost effective.
 
Mortgage advisors aka brokers really aren't needed anymore. I ignored mine and advised myself to take a better deal.

Definitely contact your current bank. If you're part way through your current deal and leave you'll get spanked for fees.
 
Could be plenty of valid reasons for moving to a house 10% more expensive e.g. to move closer to work / family etc. The house could be twice the size for all we know.
 
I love that on a thread about increasing borrowing 10% one of the answers is a straight ‘don’t move, it isn’t a big enough upgrade’. Lol

Anyway Op as has been said several times, speak with your bank, if the mortgage can be ported as you say, then there should be little issue with moving and either extending it, or if they don’t like that they’ll set up a small subaccount within the mortgage for the additional borrowing, which may have its own rate set.
 
Approach your existing mortgage provider. They will likely port the existing mortgage to the new house and open a second mortgage for the additional sum.

Alternatively, if you move providers, then it's as simple as getting a mortgage for the full sum but you may be liable for early repayment fees.
 
I've always found London and Country to be pretty good albeit once I've verified their recommendation against what's available online.
 
fwb2006 said:
I've always found London and Country to be pretty good albeit once I've verified their recommendation against what's available online.
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Actually I'll give you that. From the other side, and having dealt with them over the years, the brokers/advisors there are employees (I think) and L&C being a larger company will be under more scrutiny with regards to checks, what this all amounts too is the brokers are less likely to be lying toe tags, because there is more risk and less reward for doing so.
 
You have stated the costs above but have you considered other costs involved that would push up the numbers:

Legal fees
Stamp Duty
Moving Fees

I'm in the same position potentially looking at doubling my mortgage from 100 > 200k.
 
Destination said:
I love that on a thread about increasing borrowing 10% one of the answers is a straight ‘don’t move, it isn’t a big enough upgrade’. Lol

Anyway Op as has been said several times, speak with your bank, if the mortgage can be ported as you say, then there should be little issue with moving and either extending it, or if they don’t like that they’ll set up a small subaccount within the mortgage for the additional borrowing, which may have its own rate set.
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As much as i disagree with half the rubbish Psycho Sonny posts, he's made some valid points here. Stamp duty on a 220k property is nearly 2k, by the time you've thrown in EA fees for selling + solicitor fees along with moving costs, you're easily looking at a total cost of 5-6k. So it's not just a "20k upgrade". The point being that unless there's benefit in moving (better area, bigger house, closer to work/schools etc) then it might be a costly move for very little benefit.
 
OpenToSuggestions said:
It's also a redundant role. I can find the deals all by myself via Google and using comparison websites :).
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They have their place.
For employed people with no credit issues, is basically in a good position they cant add anything. (Although they can occasionally help speed the process)
IE someone the main lenders are really happy to have,

For those with more colourful credit histories, or those self employed etc they can make quite a difference. Not in what you can get, but how to go about it, which lenders will be more likely to accept you etc
 
Mercenary Keyboard Warrior said:
For those with more colourful credit histories, or those self employed etc they can make quite a difference. Not in what you can get, but how to go about it, which lenders will be more likely to accept you etc
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Or complex setups.. existing place, not selling but need a LTB (Let To Buy) mortgage against it which can then be used to generate deposit on a new place. Timing was important, and I was in the chain TWICE due to this.

Broker was a HUGE help.
 
Destination said:
I love that on a thread about increasing borrowing 10% one of the answers is a straight ‘don’t move, it isn’t a big enough upgrade’. Lol

Anyway Op as has been said several times, speak with your bank, if the mortgage can be ported as you say, then there should be little issue with moving and either extending it, or if they don’t like that they’ll set up a small subaccount within the mortgage for the additional borrowing, which may have its own rate set.
Click to expand...

I love how people can't read a simple sentence.

"are you moving out of choice or because you need to?"

if he has to move then fair enough. if he's doing it out of choice then it doesn't make sense.

to move closer to work wouldn't be out of choice, etc.
 
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