You want to move, but you currently have a house with a mortgage. You wonder what you can do then. Below we explain the options.
Take a mortgage to a new home
With your current mortgage, you already have low mortgage rates for the coming period, or you want to keep the mortgage that you have now. Then you can choose to move the current mortgage to the new home. The mortgage lender will treat the application for the same as for a new mortgage. Your income and the market value of the new home are therefore examined to see if the mortgage can be transferred. If the mortgage lender agrees, you can transfer the current mortgage and you retain the right to interest deduction.
Higher mortgage amount needed for the new home
Is the new home worth more than that you now have a mortgage? Then you need a higher mortgage amount and your current mortgage lender will check if you are eligible. The mortgage for the remaining amount must, incidentally, be taken out with an annuity or linear mortgage , whereby you pay off within thirty years. You will then be eligible for the mortgage interest deduction. Of the part that you finance with the existing mortgage, the same rules apply as when you closed the mortgage.
Subscription scheme for the sale of your home
If you sell the property with surplus value, then you must use the surplus value for the financing of the new home when buying a new home (within three years). Otherwise you will miss the interest deduction on the part that is worth the surplus value. This also applies if the new home costs less. Are you going to buy a new home only after three years, because you rent, for example, in the interim, then the additional loan scheme no longer applies.
Bridging loan to finance the new home
You have not yet sold your home, but you want to use the surplus value to finance the new home. This is possible with a bridging loan, although this is not always concluded by all mortgage lenders.
If you can get a bridging loan, you can finance the new home with a new mortgage and the bridging mortgage. The old mortgage is still valid until you sell the old house. If the property has been sold, you will deduct the old mortgage and the bridging loan with the proceeds. Of course you also pay interest on the bridging loan. If you have closed it for the new home, then the interest is deductible (assuming you also live in the new home). If you have sold the old house with a profit, which means that you can repay more than just the old mortgage and the bridging loan, you will have to repay part of the new mortgage with the remaining amount. Otherwise you can not deduct mortgage interest on this part.
In addition to these rules, other rules may apply in connection with mortgage interest relief. Inquire about this with a mortgage advisor. This way you create a clear picture of the possibilities within your personal situation. Request an introductory mortgage interview directly here.