Mortgage Question

kriss_boy

Looking through my mortgage deal signed back in Feb 08 Im just wondering how moving house effects my mortgage.

Mine is a 30 year 80K mortgage, 'interested only' although we are overpaying it which can be done at no extra cost. Ive phoned several times and Lloyds TSB confirm to me that I have flexibility to overpay it as a see fit with only a months notice.

Its a tracker 1.23% above BOE. Is this for life? If so arent I quite lucky to have a low rate tracker like this?

Also, being 'interest only' means I can revert it back to just that minimum interest only rate which is pretty handy.

My main question is that say I bought a property that was 120K, Id need the best part of a further 40K mortgage... does this effect my deal? Will I loose the current tracker rate of only 1.23% above BOE? Can they insist I revert to a repayment mortgage?

beecher

Your deal is good at the moment, but when base rates go back to 'norm', or even higher then it could be expensive.

If you want a 120k house you need a deposit of at least 12k. Your lender may allow you to port your existing mortgage over, and lend you additional funds but only up to an LTV of 90% (and that's dependent on your credit file, salary multiple etc). So that's be additional funds of 28k - this would be on whatever rate is available to you. They'd want evidence of a repayment vehicle I expect.