Hi all,
Apologies if you've read this before, I accidentally posted this is the wrong forum first time around!
We're hoping to move homes in the very near future and have just accepted an offer on our current property. Our current property was purchased at the end of 2007 via a Nationwide tracker mortgage. We were first time buyers and only had a 5% deposit. As a consequence the offer we've accepted is approx 1k less than what we currently owe on the property. We're now on nationwide's BMR rate which I believe is currently at 2.5% which we're keen to keep.
Speaking with Nationwide, this mortgage could be transferred to our next property. We're looking to spend more on the next house and have been advised that we could take out a second mortgage to cover the shortfall of the first.
I'm trying to get my head around how this all works, whether it's a good idea, and how it affects the size of the deposit we'll need to move.
I know there's a risk that the base rate will increase, and we'll want to change mortgage number 1 incurring a second load of fees and we'll need to find 10% of the remaining balance, but is this the only downfall?
Here our figures:
We took out a mortgage of £154500 (95% + fees) on a house worth £162000.
We've just agreed to sell at a price of £135,000
We currently owe £136,110 on the mortgage.
We're looking to by a house at around £190,000 and have funds available to put down a 10% deposit if necessary.
Thanks in advance
Purple.
Apologies if you've read this before, I accidentally posted this is the wrong forum first time around!
We're hoping to move homes in the very near future and have just accepted an offer on our current property. Our current property was purchased at the end of 2007 via a Nationwide tracker mortgage. We were first time buyers and only had a 5% deposit. As a consequence the offer we've accepted is approx 1k less than what we currently owe on the property. We're now on nationwide's BMR rate which I believe is currently at 2.5% which we're keen to keep.
Speaking with Nationwide, this mortgage could be transferred to our next property. We're looking to spend more on the next house and have been advised that we could take out a second mortgage to cover the shortfall of the first.
I'm trying to get my head around how this all works, whether it's a good idea, and how it affects the size of the deposit we'll need to move.
I know there's a risk that the base rate will increase, and we'll want to change mortgage number 1 incurring a second load of fees and we'll need to find 10% of the remaining balance, but is this the only downfall?
Here our figures:
We took out a mortgage of £154500 (95% + fees) on a house worth £162000.
We've just agreed to sell at a price of £135,000
We currently owe £136,110 on the mortgage.
We're looking to by a house at around £190,000 and have funds available to put down a 10% deposit if necessary.
Thanks in advance
Purple.
