Posted: Wed Oct 24, 2007 12:16 pm
... I know there are some mortgage experts on here and I had a question about portable mortgages.
But before I ask my question, just to fill you in on my situation and link it back to the overall purpose of this site, I am currently approx 72K in debt and was until recently seriously considering an IVA.
My wife and I have agreed to sell up and move further up north (where I'm from originally) and where we can buy a bigger house for a lot less thus clearing all debts (except 25K loan) reducing the size of the mortgage thus reducing debt and outgoings without the need for an IVA. The loan will be paid off in 5 years (the same probable length of an IVA) thus an IVA wouldn't (right now) be right for me.
The flaw in the plan is that we have to sell the house first and the market is quite quiet right now.
So, in the interim I wish to re-mortgage to release some of the equity to clear the high interest rate unsecured credit card debt transforming it into a lower rate secured mortgage. The plan is to remortgage to 90% LTV releasing 41K which clears all credit and store card debt leaving only my loan (which would then be affordable) and my overdraft (which whilst accruing interest does not require a regular payment per se and thus can be managed in the short term.
I have shopped around various lenders and can get the morgage I need but am having difficulty finding the right one with no fees and no early repayment charges. I don't want to pay fees because clearly I have no money to pay them, and I don't want early repayment charges because if we do sell (which I hope we do) then I'll need a smaller mortgage and don't want to get stung.
I have seen fee free deals but they have redemption penalties, however they claim to be portable so the real question (at last I hear you cry!) is whether or not if you have a portable mortgage you can port it over to a new property for which the mortgage required is lower? or is it only practical if you are purchasing a property of similar value?
I hope my long winded post makes sense!
But before I ask my question, just to fill you in on my situation and link it back to the overall purpose of this site, I am currently approx 72K in debt and was until recently seriously considering an IVA.
My wife and I have agreed to sell up and move further up north (where I'm from originally) and where we can buy a bigger house for a lot less thus clearing all debts (except 25K loan) reducing the size of the mortgage thus reducing debt and outgoings without the need for an IVA. The loan will be paid off in 5 years (the same probable length of an IVA) thus an IVA wouldn't (right now) be right for me.
The flaw in the plan is that we have to sell the house first and the market is quite quiet right now.
So, in the interim I wish to re-mortgage to release some of the equity to clear the high interest rate unsecured credit card debt transforming it into a lower rate secured mortgage. The plan is to remortgage to 90% LTV releasing 41K which clears all credit and store card debt leaving only my loan (which would then be affordable) and my overdraft (which whilst accruing interest does not require a regular payment per se and thus can be managed in the short term.
I have shopped around various lenders and can get the morgage I need but am having difficulty finding the right one with no fees and no early repayment charges. I don't want to pay fees because clearly I have no money to pay them, and I don't want early repayment charges because if we do sell (which I hope we do) then I'll need a smaller mortgage and don't want to get stung.
I have seen fee free deals but they have redemption penalties, however they claim to be portable so the real question (at last I hear you cry!) is whether or not if you have a portable mortgage you can port it over to a new property for which the mortgage required is lower? or is it only practical if you are purchasing a property of similar value?
I hope my long winded post makes sense!