mortgage porting

simran_2

We have 2 bed flat on mortgage with first direct and we are looking to buy a house. The LTV for the flat is 75%. For the deposit of the house, we are planning to remortgage the current flat with 85% LTV with natwest and raise some capital and then add our savings to it. This way we can arrange 20% for the house and we have had chat with first direct and they are ready to port our mortgage to the new property as long as we meet the 20% deposit. We have agreement in princiapl for the 85% mortgage as well.

Can anyone please explain to me how this will work in terms of time duration? When we actually start the process, will the solicitor take care of all this? Will this create delays in our process compared to simple one mortgage buyer? I would start the remortgage with natwest and first direct porting at the same time so the process can run in parallel.

Am i thinking this right or there are complications and delays associated with this approach which i am not aware of?

luckyfool

Do First Direct know you will be keeping on your 1st property? I suspect not as I dont think they will/would do it once they find out.

2. Do you intend to keep the 1st property as a pied a terre? Or is it for rental? If its for rental then I dont see how Natwest are agreeing to do it at 85% while knowing that.

simran_2

Yes first direct know that we are keeping it. Its not for rental. We can afford the payments so we will keep it.