Anyone ported an Abbey Flex+ Mortgage recently?

Wappers

The mortgage is described as portable, in the key facts.
I understand that typically when porting; a new additional mortgage needs to be taken out for any additional borrowing. However I would obviously like to keep the BOE+0.49% rate as much as possible.

Does this apply to the Abbey Flex+ (2006 vintage)?
Reason being it says you may borrow up to 90% of the value of your property. It is also possible to ask for a revaluation (£60 I think) (if you believe the value of your house has increased), and then you can borrow up to 90% of the new value. (Subject to lending criteria)

Could this 90% not also apply if you move to a more expensive house?
(Subject to lending criteria)

Are Abbey still allowing porting?
(i.e. not even a bank has to lend money if they don't want to, despite politicians wishes)

I wouldn't anticipate problems with the lending criteria.
The current mortgage is 1.5x joint income (officially 101% LTV! due to Abbeys automatic revaluation down...), and we have (mostly) offset savings to halve this. No other non student loans etc.

Thanks

jill2002

Wappers wrote: »

The mortgage is described as portable, in the key facts.
I understand that typically when porting; a new additional mortgage needs to be taken out for any additional borrowing. However I would obviously like to keep the BOE+0.49% rate as much as possible.
There is a special porting product for the Flexible mortgage if moving house. From memory I think it is 0.49% above Bank of England base rate - therefore a rate of 0.99% :beer:You are able to borrow the whole amount you need to borrow to purchase a property on this Flexible Porting product, without taking a top up product up to 85% LTV (could be 90%) (subject to fulfilling current criteria).

Does this apply to the Abbey Flex+ (2006 vintage)?
Reason being it says you may borrow up to 90% of the value of your property. It is also possible to ask for a revaluation (£60 I think) (if you believe the value of your house has increased), and then you can borrow up to 90% of the new value. (Subject to lending criteria)
It is unlikely that you will need a revaluation (I assume you are asking about additional borrowing now?) The valuation done when you took the mortgage on will be index linked to give an 'up to date' valuation. Ask about a 'Realtime Valuation' if the index linked one isn't enough - it's more accurate. So unless you have done a lot of work at the property then this may be enough. It is possible to have a revaluation done if it's really necessary. If you are moving house- obviously this does not apply.

Could this 90% not also apply if you move to a more expensive house?
(Subject to lending criteria)
I believe on the porting product (as detailed above) you can borrow up to 90% of the valuation of the new property- it may be only 85%, so don't quote me.

Are Abbey still allowing porting?
(i.e. not even a bank has to lend money if they don't want to, despite politicians wishes)
Absolutely, and you would be mad to give the product up unless you had to. But it is subject to current lending criteria - like any new mortgage.

I wouldn't anticipate problems with the lending criteria.
The current mortgage is 1.5x joint income (officially 101% LTV! due to Abbeys automatic revaluation down...), and we have (mostly) offset savings to halve this. No other non student loans etc.
Not quite sure of the question here as you haven't said what you are wanting to do - move or additional loan?

Thanks

Hope this answers your questions.

Wappers

Thanks for the reply, its basically as I thought then.

I was kind of suggesting an answer to the first with my second question.

The 85%/90% I think depends on the LTV of the original loan, ours was a 90% product. (Could have made a lower LTV but didn't see the point as we could still access the best rate at 90% in 2006, and we just put any extra cash in the offset account)

My last question was kind of meaning to ask a bit more about experience of current lending criteria, as if I move house I'll need to make the 1% -ve equity up, plus 10% of the new purchase, plus still fit within the lending criteria.

Would the term of loan still remain the same, e.g. 30yrs from 2006, and be due for full repayment in 2036?

jill2002

You will be applying for a completely new mortgage which you can take up to 90% LTV in theory. In practice, it will be unlikely to accept at 90% and more likely to be approved at 85%.

You can choose the term of the new loan to meet your currently affordability.