Yorkshire Building Society 2 year discount
Discounted SVR mortgage deals have their interest rate set at a specified ‘discount’ level below their Standard Variable Rate (currently 4.74%) for a specific initial deal period (typically 2 years). If they offer a discount of 3% on a mortgage deal for 2 years, you would pay a rate of 1.74% (4.74% SVR – 3% discount). If the SVR rose to 4.99%, the interest rate payable would increase to 1.99% (the new SVR of 4.99% - 3% discount). If the SVR reduced to 4.49%, the interest rate payable would fall to 1.49% (4.49% SVR - 3% discount).
HSBC 2 year tracker
Tracker rate: This means that the initial interest rate you pay is variable and is an agreed percentage above the Bank of England's Base rate. As the base rate rises and falls, your interest rate will track these changes, and this will affect your monthly payments accordingly. You can apply for this mortgage: If you are an existing HSBC Customer or not.
Barclays 2 year tracker
A capital and interest mortgage of £161,000 payable over 25 years on their variable tracker rate of 1.29% above the Barclays Bank Base Rate (currently 0.25%) for 2 years, and then a variable tracker rate of 3.49% above the Barclays Bank Base Rate for the remaining term would require 24 monthly payments of £646.93 and 276 monthly payments of £812.62. The total amount payable would be £240,923.44 made up of the loan amount plus interest and £999 (product fee), £80 (final repayment charge), £35 (completion fee).
What happens to my mortgage when I move house?
Relationship changes, new additions to the family or a new job are just some of the reasons people choose to move house. Other key reasons include wanting to upscale or downsize depending on your circumstances. One thing to keep at the forefront of your mind when considering a move is what will happen to your existing mortgage.
Fortunately, most mortgages are portable which means you can transfer it from the property that you originally borrowed against to the property that you want to move to.
To find out if yours in transferable, you should check the terms and conditions of your existing mortgage or ask your lender.
If your mortgage is portable, you will still need to reapply for the mortgage against the new property, and you may find you need to borrow more to secure it. The lender will check your finances and credit history to decide whether to accept your application.
You may struggle to transfer the mortgage if the lender’s conditions have got stricter or you earn less than when you originally took out your mortgage. Any missed repayments or other borrowings may also prevent you from being able to port your mortgage.
You may need to pay fees for moving your mortgage and for the new property to be valued.
FAQs about moving home mortgages
What is a mortgage?
A mortgage is a loan from a bank or building society to help buy a property. Over a certain term, you’ll pay back the loan, plus interest.
If I want to transfer my mortgage, do I have to use the same provider?
No, you can switch to a different provider. However, you may be required to pay an exit fee for leaving your current mortgage early.
Will I need to pay an exit fee?
An exit fee is a financial penalty applied for leaving your mortgage early. You may have to pay this if you decide to transfer your mortgage to a different provider.
Will my repayments change?
Yes, depending on the value of the property and the mortgage deal you’ve signed up for, your monthly repayments may increase or be reduced.
What happens if my income has changed or I’ve gone self-employed?
If your income has reduced since taking out your initial mortgage or you have become self-employed during that time, you might find it more difficult to be accepted for a new mortgage.
Will I need to provide a deposit when I move?
Yes, you will need to provide a deposit for your new mortgage. However, you can use the equity in your current property as a deposit.
What can I do if I’m not offered a new mortgage?
There are several factors which may mean you are refused a new mortgage, especially if the new home you’re looking to buy is of a higher value than your current property. Mortgage providers will usually tell you why you haven’t been approved so make sure you listen to their feedback. It may be that you need to improve your credit score, pay off a higher percentage of your mortgage or renovate your home so that it can be sold for a higher price.
What happens if I fail to pay my mortgage off?
If you are unable to pay back the mortgage, the lender could repossess your house.