Moving house, porting a mortgage, second mortgage for uplift

[zed4]

Hi everyone,

My girlfriend and I have just happened to come across a lovely house for sale in our dream location, and it’s just about in budget. We weren’t really looking to move house, but as it’s come up, we’re now looking into it quite seriously. We’re only ever bought one house, so not yet experienced selling a house and porting mortgages!

The only niggle is that we’ve recently just changed mortgages and signed up to a 2 year fixed rate, so there’s no getting out of that for a while. This was done in January. I believe we can port out mortgage to a new property, but the new property is about £110,000 more than our existing one, so we would need a second mortgage to run alongside the first one.

I’ve not looked into second mortgages before. Are they quite straight forward? Just run for two years alongside the existing mortgage, then when the fixed periods are up, just fix to a new mortgage to cover the entire amount?

Is it possible to go interest only for the second mortgage? It would help with our repayments, as two repayment mortgages are going to be quite expensive for us. Then in two years, remortgage to one mortgage for the whole amount? Does that make sense?

We’re currently with Nationwide, been with them for the previous 3 years and just fixed to a new rate with them direct when our fixed rate finished in January. Did it direct, so not through a broker.

Many thanks,

Dan

[Ollerton57]

I have three mortgages, all with the same provider. I expect however that you would have difficulties if you wanted to use separate providers.

Essentially, I have three different products with different rates and terms (2 fixed one variable). When the two fixed terms mature we will look to merge al three into a single mortgage.

My circumstances were single mortgage. New mortgage for the next house to cover the difference. Third mortgage for extension.

I don't see any issue with what you want provided you pass their affordability tests.

[D7PNY]

We did this with Nationwide when we moved from our first place and were in a 5 year fixed deal at the time that then dropped to a silly low (for the time) guaranteed rate.

Ported the mortgage and had a top up mortgage (also with Nationwide) for the difference.

They were pretty helpful even though we sold quick and had a few months gap till the next house was finished.

[anonymous-user]

To save starting another thread, does anyone know if it's possible/advisable to get the second mortgage with a different provider? Else you're stuck with the rates from your current provider, which might not be as competitive at a higher price point/different circumstances.

[Sarnie]

ScotHill said:

To save starting another thread, does anyone know if it's possible/advisable to get the second mortgage with a different provider? Else you're stuck with the rates from your current provider, which might not be as competitive at a higher price point/different circumstances.

Take it with the lender offering the best rate and will lend to you......