Just to sound you experts out before I contact my mortgage company

ianandjody

Good morning all, this is just really a quick sounding ground before I contact my mortgage company. Have a 2 bed which I have just had valued to sell and move up to a 3 bed in the same area. Mortgage same company for 6 and half years, through 1 re mortgage onto a new deal and now on SVR.

Low guide for sales price is £150k and current outstanding is £120 give or take, selling based on 10% below valuation so should be achievable (only a couple of 2 beds on market in our area, not many built so fairly desirable). We are currently with RBS - First active on SVR which is 1.1% above base, so currently 1.6%, which we are over paying, by a little each month. Mortgage is portable and we have no redemption penalty's.

Simple question, we are looking to move and borrow more, probably looking for 85% max LTV and we are hopefully within borrowing multiples from most lenders, with no adverse credit risks. Joint salary of £51k with only a student loan as committed credit outgoings. looking to buy for max 200k, hopefully nearer 190k.

After all that, simple discussion and to put ideas in my head, what are my basic options, as i would ideally like to keep my 1.6% for now, and I do understand base rates can and will go up. So do i keep this bit, would current lender, let us have more on same rate (probably and understandably not), let us borrow additional on different amount.

Or do i look to port this across to another property and would my current and new lender to lend the extra, would they both be happy with this?

I am ringing them tonight, but after some ideas, advise whilst sat here pondering the situation.

Thanks in advance from all you helpful people

Ian

Thrugelmir

Any new borrowing will be at current product rates not at existing.

Primary lenders will not accept 2nd charges on property loans. So you are best to stick with RBS considering your current SVR.

With rate so low you should be making considerable inroads into your mortgage debt while the time is good. Rates won't stay low into the future.

getmore4less

£150k-£120k = £30k

£190k-£200k
84% - 85% LTV
3.2-3.4 salary multiple

Will RBS extend lending on those terms?

http://www.rbs.co.uk/personal/mortgages/g1/existing-customers/moving-home.ashx

variable says 80% max LTV
http://www.rbs.co.uk/personal/mortgages/g2/variable-rate.ashx?tab=4

fixed says 90% so you may be OK
http://www.rbs.co.uk/personal/mortgages/g2/fixed-rate.ashx?tab=4

Time for a call to see if they will let you port and extend