Moving with a long term fixed mortgage?

mirandabakes

Good morning. We are about to take a 10 year fixed rate (re)mortgage at 4.99% with currently 55% LTV. We intend to make regular overpayments starting straight away to reduce the capital on the loan so (provided prices don't continue to fall drastically) in about 5 years time we would have a LTV of about 45%. We have been advised that the mortgage is 'portable' although I know there can be pitfalls in this theory, and I just wondered if someone could explain a bit about what we might have ahead of us and how it all works should we decide we wanted to upgrade during the 10 year period?

mirandabakes

Hello again! I just wondered if anyone had anything to offer on the subject of moving a mortgage as I really have no idea how it works and would like to know what we would have in store in a few years if we decide to sign and seal on the 10 year fixed. Many thanks.

_Andy_

The mortgage will be treated as a new application although you can keep the rate.
Bear in mind portability is not guaranteed.
E.g. if your income had significantly decreased or you'd got some adverse credit in the meantime you could be declined etc.

Thrugelmir

mirandabakes wrote: »

Good morning. We are about to take a 10 year fixed rate (re)mortgage at 4.99% with currently 55% LTV. We intend to make regular overpayments starting straight away to reduce the capital on the loan so (provided prices don't continue to fall drastically) in about 5 years time we would have a LTV of about 45%. We have been advised that the mortgage is 'portable' although I know there can be pitfalls in this theory, and I just wondered if someone could explain a bit about what we might have ahead of us and how it all works should we decide we wanted to upgrade during the 10 year period?

By upgrade, do you mean sell and buy more expensive property?