Portable Mortgage and application fees?

alm721

Can anyone help with the following?
We are moving and have a portable tracker with thw Woolwich. The mortgage is portable so I know we can keep the rate. We also want to increase our borrowing by about £30k. Questions are this?
1. Assuming we DONT increase the borrowing and borrow the extra money elsewhere, will we get charged an application fee for moving the mortgage?
2. If we do borrow the extra will we get charged an application fee?
3. Are their any other costs we need to consider (ie I know that a valuation fee will be charged etc.
I do know that any extra borrowing will be at a new rate so if the answer to Q1 is no and the answer to Q2 is yes then does it make sense to look to either a. borrow the extra money with the best deal we can get which may be with another lender as a second charge on the property, or b. boorow it as a buy to let mortgage against my hubbys old house which is mortgage free and currently rented out.

Any ideas would be great sorry if this makes little sense.

alm721

Does anyone have any advice?

Trying_to_be_good

alm721 wrote: »

1. Assuming we DONT increase the borrowing and borrow the extra money elsewhere, will we get charged an application fee for moving the mortgage?
2. If we do borrow the extra will we get charged an application fee?
3. Are their any other costs we need to consider (ie I know that a valuation fee will be charged etc.
I do know that any extra borrowing will be at a new rate so if the answer to Q1 is no and the answer to Q2 is yes then does it make sense to look to either a. borrow the extra money with the best deal we can get which may be with another lender as a second charge on the property, or b. boorow it as a buy to let mortgage against my hubbys old house which is mortgage free and currently rented out.

Any ideas would be great sorry if this makes little sense.

1. I don't think so - but you must meet the current lending criteria e.g. LTV.
2. Probably - you used to be able to 'top-up' at SVR rates, but not any more.
3. Not more from the lender as you're not ending your mortgage (unless you aren't able to port your current mortgage, in which case any ERCs and sealing fee will apply for ending the mortgage early). You will obviously have all the legals etc for the new house.

If you can't port it may be worth taking a totally new mortgage, will depend on the figures (e.g. ERCs, rates available etc)

Any mortgage you take out against the buy-to-let is tax deductable so more tax-efficient, assuming you aren't already claiming tax relief for other mortgage interest in lieu (i.e. for the mortgage on your home, up to the value of the mortgage when the other house was first let out).

Lots of variables here, so sorry if it's all come across a bit confused.

dwsjarcmcd

alm721 wrote: »

Can anyone help with the following?
We are moving and have a portable tracker with thw Woolwich. The mortgage is portable so I know we can keep the rate. We also want to increase our borrowing by about £30k. Questions are this?
1. Assuming we DONT increase the borrowing and borrow the extra money elsewhere, will we get charged an application fee for moving the mortgage?
2. If we do borrow the extra will we get charged an application fee?
3. Are their any other costs we need to consider (ie I know that a valuation fee will be charged etc.
I do know that any extra borrowing will be at a new rate so if the answer to Q1 is no and the answer to Q2 is yes then does it make sense to look to either a. borrow the extra money with the best deal we can get which may be with another lender as a second charge on the property, or b. boorow it as a buy to let mortgage against my hubbys old house which is mortgage free and currently rented out.

Any ideas would be great sorry if this makes little sense.

1. No
2. Take a product that has a slightly higher rate but no fee then no. With a £30k top up,avoid fees
3. Other than normal conveyancing then no

Regarding the 2nd charge, a definite no, you'll pay through the nose via the rate, with the BTL mortgage you will also pay a higher rate, so best is to exhaust the portability route with the top up loan

alm721

Thanks for the replys. I think we should still meet all the criteria for the orginal mortgage and our ltv is now about 48% and is less than it was before. We do want to hang on to the existing mortgage if poss as it is a really low lifetime tracker so at the moment is a pretty good deal. I know we can't borrow the extra at this rate anyway so was trying to weigh up if there is no application fee for just porting the existing mortgage, but would be if we borrowed the extra then what would be the best way to borrow the extra money if that makes sense.
Thanks again