Mortgage and trading up.

P

Pique318

Registered User
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Hi All,

I'm not sure how this works so am looking for clarity.

I have a tracker mortgage at the mo. Say for instance I now went fixed with my lender for 10 years (for example) and got a pretty good rate that I could happily pay and know I could continue to pay for the next 10 years.

Now say I wanted to buy a bigger place and trade up. Do I HAVE to get a new mortgage and get penalised by breaking the 10 year fixed period ?

As the bank hold my deeds, I cannot sell the house without their involvement. Does this mean that they will require me to close one mortgage as it is for my current house, and open a new one for the new house ?

As I am currently a FTB, will that status be gone, even though I'm still in the 7-year FTB period ?

Thanks for any info.

PK
 
Most lenders will allow you to break your fixed rate without penalty once you take the new mortgage out with them - I would get this in writing from the bank though to be sure.

You will have to clear the first mortgage before the bank will release the deeds.

You will still get FTB tax relief at source but you will no longer be a FTB for stamp duty purposes.
 
I presume you would lose FTB tax relief at source as you are buying your 2nd house.
 
OK, so I'd still be eligible for TRS, but also would get stung for Stamp Duty.

The Mortgage would be re-negotiated at whatever the rate is at the time and my low fixed rate is now kaput.

Does Stamp Duty apply if you are building a (PPR)house ?
 
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