Moving, Porting, Borrowing More

im2020 · 23 June 2010 at 11:25AM

I have a very attractive lifetime tracker mortgage with the Woolwich (0.17 above BBBR). The outstanding balance is £132K and I can port this. I am about to move house and need to borrow an additional £80K. My LTV will still be a healthy 44%. Woolwich are offering 2.39 above BBBR (plus £999 arrangement fee) for the additional loan.

I notice First Direct are offering a lifetime tracker at 1.79 above base rate at the moment.

Does anyone know if the Woolwich and First Direct are likely to allow me to go with loans of £132K from the former and £80K from the latter?

Thanks in advance for any thoughts.

_Andy_ · 23 June 2010 at 11:39AM

If you mean two loans on the same property from different lender then no, that isn't possible.

beecher2 · 23 June 2010 at 11:42AM

If you are porting, you need to get the additional finance from the Woolwich. I take it you have their agreement to port and borrow more since you say you are about to move home?

im2020 · 23 June 2010 at 12:22PM

Thanks Andy and thanks Beecher. Yes, I have the Woolwich's agreement. So I'll get my calculator out and just check whether borrowing the whole £212K from First Direct is a better deal.

im2020 · 23 June 2010 at 12:51PM

The answer is I should stay with the Woolwich ...... but ........ is anyone particularly good at maths? Should I take the extra £80K (for 22 years) at 2.39 above BBBR with the £999 arrangement fee or at 2.69 above BBBR with no arrangement fee?

dimbo61 · 23 June 2010 at 2:12PM

You can put the figures in "whatsthecost" but I think adding the £999 fee onto the £80K still makes it about £3K cheaper to have the lower rate ( and pay fee) than the other deal.