Hi all,
I am after a bit of advice. I took a 100% mortgage out with Scottish Widows, on a house which I bought for 125,000, just over 6 years ago. I am on their standard variable rate (about 2%) and am paying about £610 per month.
I am just about to sell this house for the same amount I paid for it and I have about £112,500 left on the mortgage.
The new house I am buying is worth about £150,000, however I am buying it off family for £80,000.
My plan is to port the £112,500 from my old house onto my new one and then get the £32,500 back from the current owner (leaving them the agreed £80,000). I will then put this £32,500 plus the £10,000 or so I make from the sale into an offset account to reduce my mortgage payments.
If I do this am I likely to remain on the SVR, or will they make me take a new product? Also is there anything else I need to consider with this kind of arrangement (i.e. buying from family at below market price)?
Thanks,
MJ
I am after a bit of advice. I took a 100% mortgage out with Scottish Widows, on a house which I bought for 125,000, just over 6 years ago. I am on their standard variable rate (about 2%) and am paying about £610 per month.
I am just about to sell this house for the same amount I paid for it and I have about £112,500 left on the mortgage.
The new house I am buying is worth about £150,000, however I am buying it off family for £80,000.
My plan is to port the £112,500 from my old house onto my new one and then get the £32,500 back from the current owner (leaving them the agreed £80,000). I will then put this £32,500 plus the £10,000 or so I make from the sale into an offset account to reduce my mortgage payments.
If I do this am I likely to remain on the SVR, or will they make me take a new product? Also is there anything else I need to consider with this kind of arrangement (i.e. buying from family at below market price)?
Thanks,
MJ