Porting to higher LTV
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luckbox
Posts: 111 Forumite
My residential fixed mortgage is coming to an end in a few months, so will be remortgaging to another fixed, but this time at a LTV of 60% and a portable product. Around 1.1% looks achievable.
My question is what would happen if I decide to move and buy a more expensive property during the fixed period and borrow more than I currently am, which would move the LTV back to 75% for instance. Would I be able to port the mortgage at 1.1% and add a second mortgage at a higher rate for the surplus, or would it be seen as a reason for me to fail the criteria to keep the 1.1% when I effectivly re apply and therefore, have to take a whole new mortgage for the whole amount at a 75% LTV?
I hope it makes sense.
My question is what would happen if I decide to move and buy a more expensive property during the fixed period and borrow more than I currently am, which would move the LTV back to 75% for instance. Would I be able to port the mortgage at 1.1% and add a second mortgage at a higher rate for the surplus, or would it be seen as a reason for me to fail the criteria to keep the 1.1% when I effectivly re apply and therefore, have to take a whole new mortgage for the whole amount at a 75% LTV?
I hope it makes sense.
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Comments
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Only the increased borrowing influences the LTV for the new product.
So you keep your current rate and the new product will be based on the LTV of the overall loan but will only affect the extra bit.
To help you when you are planning and talking to a lender, if you are remaining with your existing lender, it's a customer retention product, not a remortgage and when you port, you will still have one mortgage but it's split into separate sub-accounts to represent the different amounts borrowed at different times.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Only the increased borrowing influences the LTV for the new product.
So you keep your current rate and the new product will be based on the LTV of the overall loan but will only affect the extra bit.
To help you when you are planning and talking to a lender, if you are remaining with your existing lender, it's a customer retention product, not a remortgage and when you port, you will still have one mortgage but it's split into separate sub-accounts to represent the different amounts borrowed at different times.
Many thanks for answering. Makes remortgaging a lot easier if this won't stop porting and yes, this will be a remortage initially, the retention product is not quite competitive enough unfortunatly, so a bit more time consuming, but worth it for lower payments of course.0
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