We have a morgage with about £23,000 left to pay, our house is worth £135,000. We want to move to a house that costs about £165,000.
We will be renting our house out for £450pcm, is it cheaper to clear our mortgage then take out a 100% mortgage for the new house or re-mortgage and take out a smaller mortgage plus a bit extra for improvements?
2007-03-23 02:15:10 · 2 answers · asked by lisa l 1 in Business & Finance ➔ Renting & Real Estate
Have a chat with your current mortgage provider and see what deals they can do. Be prepared to push them a bit, it's amazing how much you can haggle with financial institutions that think they may lose your custom.
You won't get a good interest rate on a 100% mortgage, but if you can provide as little as 5% as a deposit the rate will fall, so spend as much time as you can investigating the best deals and meeting with advisors if you have the time.
And look out for that Sir William Smith, anyone who writes with the caps lock on seems dodgy to me!
2007-03-23 02:40:48 · answer #1 · answered by finch 5 · 0⤊ 0⤋
You wouldn't get such a good deal on a 100% mortgage and there are less lenders prepared to offer 100% mortgages.
My advice would be to go round all the mortgage lenders and find out what they can offer and make your choice after having all your options and getting all the information you can....My first port of call would be my existing lender.
2007-03-23 02:23:29 · answer #2 · answered by blazing_staruk 3 · 1⤊ 0⤋