Porting a really good rate

snarffie

Hi,

I was wondering if there is any consensus on this...

My existing mortgage is on about a 58% ltv, based on a fairly conservative asumtion of current house prices. I currently have a lifetime base rate tracker with hsbc, on a rate of +0.23, leaving me on a rate of 0.73%. I've had the mortgage for about nine months, with about 18 years left.

We are at an early stage of toying with the idea of moving into a more expensive house, but are not sure how co-operative our lender will be in honouring the 'portability' of our mortgage if we were to trade up. As the new house would be more expensive, wewould probably be looking at an overall ltv of 70-75%. Is the lender likely to try to get us off our tracker, or would it likely be a simple case of lending the additional amount on a second mortgage deal at the going rate?

Having an additional fixed rate deal (in addition to our existing tracker) would probably be a good way of hedging against rate rises as we could continue to save and plough our money back in overpayments as and when the rate on our tracker inevitably rises to an unacceptable level.

Any ideas on the lender's likely take? Btw, the total loan to salary multiple would be about 2.5x, so nothing nasty there.

Cheers.

snarff.

_Andy_

The additional borrowing will be on whatever rates they now have. The existing borrowing will be ported on the current rate.

The application will be subject to HSBC's current lending criteria.

snarffie

_Andy_ wrote: »

The application will be subject to HSBC's current lending criteria.

...and that's the difficult one to get a feel for (without actually talking to somebody at hsbc, who will likely give me unreliable advice anyway..)....just wondered if anybody had actually done this recently.

_Andy_

Well income is fine - I can't see you having any problem unless you have any adverse credit or have huge outgoings on credit, e.g. loans.

_Andy_

PS not sure why you think HSBC would give you 'unreliable' advice given they are the lenders.

snarffie

_Andy_ wrote: »

PS not sure why you think HSBC would give you 'unreliable' advice given they are the lenders.

They may be the lenders, but the advice they give comes via an individual branch advisor (or an online/phone advisor), and their knowledge, based on my previous experiences is, just like interest rates...a little variable.

snarff

noxon

Haven't done this with HSBC but went through the same process with Woolwich very recently. I ported my base+0.28% lifetime tracker, added extra borrowing on one of their current fixed rate deals and also added my partner to both parts of the mortgage as it was previously solely in my name. We had to jump through all the hoops of meeting current lending criteria but there was no question of them not honouring the tracker portability as long as they approved us. Call and ask HSBC and someone should be able to talk you through the process and timescales.

ronaldmacdonald

I tried to port an extremely good rate with the HSBC and wish I hadnt wasted my time on the phone call. Essentially they said yes ok "the rates are changing so call back next week". I called back 4 days later and they then moved the goal posts from 90% to 75% ltv.

Like you say, maybe random telephone call centre nonsense but I can't be ar$sed with them and went elsewhere, which is probably what they wanted.

hearts

Some of the replies aren't relevant to the question. With regard to Porting, the question has been answered.
You will get the same rate for the borrowings you have now. Any additional borrowings will be at a different rate. These rates will be detemined by your LTV.

boots_babe

We're in a similar situation, thought I'd report our experience. We currently have mortgage with First Direct (part of HSBC so prob same underwriters?). Approx 55% LTV at the mo.

Looking to put offer on new house, which would involve borrowing approx double what we have now, on 75% LTV. Called earlier this week to arrange AIP and they were fine about it. They actually said that if we want to move house and take larger mortgage, we had NO CHOICE but to retain existing mortgage amount on the existing rate (which suits us as it is so low), then take second mortgage and current rates for the remainder.

So don't see why you'd have any particular difficulties, subject to their normal lending criteria of course.

shirlgirl2004

Can you change the term for the ported mortgage? It would make sense for us to increase our term.