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Briefly house is for sale, and obviously market has gone to pot. both on basis of places to buy and people to sell to.
The current fixed rate is about to run out, which might be fine if I get a buyer, but not if I don't.
So thoughts are pull the sale, take a short term fixed and try again when things are hopefully a little more stable.
Or, how does porting work? Can I take a longer term mortgage with the intention of moving in the near future and then looking for an extension or a second mortgage to cover the difference?
You need a broker
Yes,. You can move a mortgage to a new house, but if you need extra borrowings, you would need a second mortgage. Fairly normal. Alt is that you let your current mortgage move to the Standard Variable Rate so that you have not tied yourself in to it, then when you sell your house, you pay off that mortgage and get a new single mortgage on your new home. Up to you to work out which is the cheapest or most suitable route to take
The Fixed Rate period of your current mortgage is ending, not the actual mortgage, hence you can just let it run for the remainder of your e.g. 25 year deal at the SVR
We moved last year 6 months before the fixed rate expired. Got a SVR additional borrowing to go with it, then moved both to a fixed rate 6 months after the move. Very painless, broker dealt with it all admirably.
No crystal ball here but I suspect the market is actually going to pick up in the next few weeks. More properties will come to the market which will stoke the flames and confidence will return. High demand vs supply will keep prices from dropping as much as the media and pub goss will have you believe.
Like I said, no crystal ball but I work in the industry and this is how it feels on the ground to me.
Ps. Defo speak to a good INDEPENDENT mortgage broker about your finances. PM me if you would like me to put you in touch with someone very good. I don’t suggest going direct to your bank.
A falling house market generally benefits anyone looking to move up the ladder, ignoring the external factors that may be making it fall.
You might get say 10% lees for your say £500,000 house (i.e. £50,000 less). But your new £1,000,000 house will now be £100,000 less. So you're £50,000 better off.
As I say... external factors such as cost of living, job security and interest rates make it a little more complicated than that. But if you have a stable job and can afford the mortgage repayments, then sell and buy now if you can.
And as others have said... porting a mortgage is pretty standard. I read this morning that there's some good trackers out there now without any early redemption charges, so you could do that.
What is "porting"?
Keep the same mortgage, move house.
When porting a mortgage you only port the rate, not the debt. So you sell your house, clear the mortgage, and then apply for the new mortgage at the ported rate. The LTV should be kept within the threshold. Your financial circumstances may have changed, and thus your affordability is taken into consideration. From recollection, there are no ERCs when porting.