Second Add on mortgage for new property

Trick

I currently have a lifetime base rate tracker (base + 0.49%) and do not wish to lose this mortgage.
However i am keen to buy a bigger house and therefore require an add on mortgage for around 50k.

Is this a normal procedure? or would i be required to redeem current mortgage and apply for new loan at increased amount?

_Andy_

If your mortgage is portable and you meet the lender's criteria, you can keep the existing mortgage. The additional borrowing will be based on what rates they currently offer.

dwsjarcmcd

It is normal to 'port' your mortgage to your new property providing the mortgage contract's T & C's allow, and take a 2nd product to fund the difference. A few points to note
- Portability means you are underwritten again for the whole amount, it is like a new mortgage application.
- If your chosen top up product is for example a fixed rate with a £2000 application fee, you would still need to pay this fee, so given the top up is fairly small, it may be worth considering a higher rate, smaller fee product.
- Although this doesn't apply to you, if your main product had an end date which was different to your top up product, there is always a mismatch in dates. This means you can't remortgage until you alleign these dates, which could mean a period of time on SVR for one of the products. Good for now, but may not always be.

David

Trick

Thanks to both.

I guess my first port of call is to speak with current lender and investigate my options.

toonLoon

I currently have a £66k mortgage with CIS on SVR 4.24% (portable I think).
I am looking to buy a house for £150k but will need approx £20k to refurb it.
My house at the minute looks like selling for £110k (£44k profit).
I know I will have Agent/Solicitor fees to pay from the profit.
What would be the best way to get a mortgage which would enable me to have the funds to do the work needed on the new house?
Any suggestions are greatly appreciated!

beecher

toonLoon, you'd be better making a new thread for this.

I don't think SVR mortgages are portable.

It'd be good to try to keep under 85% LTV so you could geta mortgage for £127,500, with a deposit of £22,500 leaving £21,500 for fees and refurb.

Is your salary ok to get a mortgage at that level?

toonLoon

Yes. £25k & wifes £11k.
Next thing to do is try to find a good fixed rate between 3 and 5years, although best deals are 25%-40% deposit.
Thanks.