Hi all, I'm hoping that someone can offer me some advice. I'm looking to move house in the near-ish future and am just a bit clueless on porting my mortgage from my current property to the new one. I guess I should start with the facts below...
Current property
Bought at £187,000 with a 10% deposit
Remaining balance of approximately £163,500 with 32 years remaining.
2 years (and a bit) remaining on current fixed term mortgage (product switching to a lower rate in May).
Currently paying a few quid above £800 a month for the mortgage.
Valued last October at between £200,000 and £215,000 (some work done since and ongoing - nothing major)
Zoopla estimate for rent is about £800pcm
Prospective property
Accepting offers of £189,950
Potential rental estimate aroud £800pcm again
Having recently agreed a switch in the mortgage product on my current address to save myself £160 a month it seems the best option may be to port the mortgage over to the house I'm hoping to buy based on selling the house I'm in.
The bit I'm confused about is that potentially I can make a fairly decent margin on selling my house even with legal fees deducted but would that cash surplus need to be worked into the new property as an overpayment on the mortgage, or would I simply be able to keep this excess in cash terms in order to use as I choose?
Another factor is that since getting the first mortgage my income has dropped a bit, but while my income (and my partner's) is apparently high enough to borrow the same amount of money I was originally loaned with the mortgage, I understand that a reassessment is required for porting, and it may be that the bank have changed their lending criteria since my first mortgage application.
It has also been suggested to me that it may be possible to port the mortgage to the new property and take out a supplementary buy to let mortgage on my current home. It seems an interesting option as I would like to build up somewhat of a portfolio as a pension (and for a few extra quid in the long run so my wife will let me buy a motorbike!). I could potentially raise enough for a new deposit through scrounging and begging. With that said, would it simply be easier to move out (I can live with the inlaws free of charge for a few months) and rent out my current property privately as opposed to a buy-to-let deal? If I can cover my mortgage repayments with a private tennant could I then take out a second mortgage to purchase a new property?
Sorry about all the questions, I know that its a lot of garbled information! Any advice would be appreciated! Thanks!
Current property
Bought at £187,000 with a 10% deposit
Remaining balance of approximately £163,500 with 32 years remaining.
2 years (and a bit) remaining on current fixed term mortgage (product switching to a lower rate in May).
Currently paying a few quid above £800 a month for the mortgage.
Valued last October at between £200,000 and £215,000 (some work done since and ongoing - nothing major)
Zoopla estimate for rent is about £800pcm
Prospective property
Accepting offers of £189,950
Potential rental estimate aroud £800pcm again
Having recently agreed a switch in the mortgage product on my current address to save myself £160 a month it seems the best option may be to port the mortgage over to the house I'm hoping to buy based on selling the house I'm in.
The bit I'm confused about is that potentially I can make a fairly decent margin on selling my house even with legal fees deducted but would that cash surplus need to be worked into the new property as an overpayment on the mortgage, or would I simply be able to keep this excess in cash terms in order to use as I choose?
Another factor is that since getting the first mortgage my income has dropped a bit, but while my income (and my partner's) is apparently high enough to borrow the same amount of money I was originally loaned with the mortgage, I understand that a reassessment is required for porting, and it may be that the bank have changed their lending criteria since my first mortgage application.
It has also been suggested to me that it may be possible to port the mortgage to the new property and take out a supplementary buy to let mortgage on my current home. It seems an interesting option as I would like to build up somewhat of a portfolio as a pension (and for a few extra quid in the long run so my wife will let me buy a motorbike!). I could potentially raise enough for a new deposit through scrounging and begging. With that said, would it simply be easier to move out (I can live with the inlaws free of charge for a few months) and rent out my current property privately as opposed to a buy-to-let deal? If I can cover my mortgage repayments with a private tennant could I then take out a second mortgage to purchase a new property?
Sorry about all the questions, I know that its a lot of garbled information! Any advice would be appreciated! Thanks!