Sorry if this is a very basic question but I’m not originally from the UK and still getting familiar with how mortgages work here.
Say I have a flat worth X with half of that in the mortgage at a rate of r1% and I want to sell my flat to buy a house worth 2X (to make things easy to reason about). Say I’m also in the middle of the fixed period, with multiple years left before I can remortgage. Let’s also assume I want to stay with the same amount of equity invested (ie X/2, ie 25% of the house I want to buy).
What are my options? Can I keep X/2 in equity, X/2 on the first mortgage at r1% and then get a second mortgage for X at a second rate of r2%?
Or do I have to stick with the same lender and negotiate an increase of my mortgage from X/2 to 3X/2?
Or early repay (presumably very expensive?) my first mortgage and get a new one with any lender for 3X/2?
Something else?
Thanks a lot
Say I have a flat worth X with half of that in the mortgage at a rate of r1% and I want to sell my flat to buy a house worth 2X (to make things easy to reason about). Say I’m also in the middle of the fixed period, with multiple years left before I can remortgage. Let’s also assume I want to stay with the same amount of equity invested (ie X/2, ie 25% of the house I want to buy).
What are my options? Can I keep X/2 in equity, X/2 on the first mortgage at r1% and then get a second mortgage for X at a second rate of r2%?
Or do I have to stick with the same lender and negotiate an increase of my mortgage from X/2 to 3X/2?
Or early repay (presumably very expensive?) my first mortgage and get a new one with any lender for 3X/2?
Something else?
Thanks a lot