Should I stay or should I go?

Pythagorous

I currently have a repayment mortgage of £130K and an interest only additional mortgage of £50K.

The repayment mort rate is a tracker @ BOE+0.95% for the term of the mortgage and the IO rate is on a discounted standard variable rate of 1.8% below SVR (ending Aug 2012).

Both are with Alliance & Leicester

We are considering moving and buying somewhere which would mean taking out a mortgage of £250K (which will mean borrowing about 70% of the property price).

Can anyone tell me how the bank is likely to lend the additional required capital. I mean will it be possible to take on the additonal 70K on a completely seperate rate or will they want to combine everything. Basically I don't want to forfeit the great tracker rate I'm on at the moment!

getmore4less

Are they both portable?

Does your income support a total of £250k?

Pythagorous

getmore4less wrote: »

Are they both portable?

I've no idea!

getmore4less wrote: »

Does your income support a total of £250k?

Yes

_Andy_

Your mortgage will be portable subject to meeting today's criteria (i.e. it's treated as a new application). The additional funds will be at today's available rates.

Give them a call and they will let you know if it's possible.

getmore4less

Need to get the paper work out or ask A&L about the portability of the existing loans.

wodgerdodger

Certainly when I worked at A&L before the santander takeover you could always port the current products to the next property and the additional amount required would be taken out on a product from the current product portfolio.
With your exiting tracker it is a great deal and unmatchable from any Lender currently and not likely to be seen again. I have same product and wouldnt swap it at all.
Currently you mortgage account will be numbered 01 & 02 the extra borrowing would be 03. You can normally keep the existing term of the current loan and the extra bit could be longer up to age 75 subject to having sufficient income past normal retirement age.

Pythagorous

wodgerdodger wrote: »

Certainly when I worked at A&L before the santander takeover you could always port the current products to the next property and the additional amount required would be taken out on a product from the current product portfolio.
With your exiting tracker it is a great deal and unmatchable from any Lender currently and not likely to be seen again. I have same product and wouldnt swap it at all.
Currently you mortgage account will be numbered 01 & 02 the extra borrowing would be 03. You can normally keep the existing term of the current loan and the extra bit could be longer up to age 75 subject to having sufficient income past normal retirement age.

Thanks Wodgerdodger (great name btw :rotfl:).

Yes you are right - in hindsight it does seem a great deal given its for the life of the loan:j. It stinks the way banks are now creaming such a big margin given the taxpayers bailed them out. I wonder what sort of margin above BOE we are likely to see when the base rate returns to more normal levels.

dimbo61

You are paying 1.45% on a £130,000 repayment mortgage and you think the banks are making money on that ?
How many staff work for the banks and how many are going to lose there jobs this year plus all the stupid irritating adverts

Pythagorous

dimbo61 wrote: »

You are paying 1.45% on a £130,000 repayment mortgage and you think the banks are making money on that ?

Where did i say that Dumbo? I'm talking about the margins they are currently charging on current products.

The clue is in the word NOW above