MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
My 2 year mortgage deal ends in August so i need to remortgage before the interest rate goes up. This is simple enough, however its complicate by the fact that i am considering buying a property with my other half soon. The property would be more expensive however the mortgage im looking at is portable (obviously would need to borrow extra to cover the cost of new house). Im not sure on what to do and i would like peoples opinions. My options i think are:
1) Remortgage in my name only and then apply for a joint mortgage when we move which would likely to be two mortgage applications within a few months.
2) Apply for a joint mortgage now with the intention to move
3) Remortgage in my own name, and my other half gets her own mortgage and then we move house so essentially we have two mortgages on our new house.
Any advice would be much appreciated!
If you add your partner to the mortgage now you'll incur additional costs and annoyance as this is called a transfer of equity. Refinance now in your own name but if you want to be free to consider other lenders when you move in with the Mrs take a deal without any tie in BUT you'll likely be on a slightly higher rate potentially the lenders SVR.
Have you spoken to a mortgage advisor?
Is 3) actually an option? Sounds a bit peculiar.
Personally I'd be going option 2. It'll be easier to remortgage with the same lender when you move. Anything to avoid going through two separate applications!
Option 2 would still mean 2 applications as it would be a different house, new risk, val, increased mortgage.
Option 3 isn't viable. A mainstream lender would require 1st charge on the new property. There can't be 2 1st charges. You can get 2nd charge secured lending but he's on about taking the mortgage now it would set up as 1st charge. You can't then just change it to 2nd charge. Option 3 is nonsense. 😊
Why not just go onto the current lenders variable rate for a few months before moving? Less hassle - depends what you might save in interest, vs fees, early redemption penalties etc
have you factored in the higher stamp duty of having your name on 2 properties?
if you can i would own 1 property each if possible.
ignore me, i haven’t read your post properly
I am in the process of taking out a remortgage on a fully flexible deal with no ERCs - the interest rate isn't as much higher as I expected and much lower than my current lender's SVR (although admittedly there are fees involved to set it up). In my case it's because I'm expecting an inheritance in the next six months or so (currently waiting for a property to be sold and the proceeds divided up) and it made more sense to remortgage then pay it down than to wait, particularly if rates rise in the meantime as I've locked in a 5 year rate.
I have an appointment with a mortgage consultant next week, albeit not an independent one. MrSmith i wouldn't be owning two properties.
I have an appointment with a mortgage consultant next week, albeit not an independent one.
See an indy one too. A lot of mortgages can also be agreed in principle and then held for a few months; this may work in your favour, or if rates change you could ditch it and look at what becomes available.
It might not be worth re-mortgaging when your current deal runs out.
All mortgages have set up fees, if you only going to be on the standard rate for a few months, before you get a joint mortgage, then those fees will probably be more than the interest you might saves.
I doubt you will be able to transfer your mortgage over when you want the joint one. This will be a new "product".