Any chance ?

Peter_L

We have spotted a new build which has been reduced now to £199950 - 4 bed Semi over 3 floors from £250k a year ago. We currently have a 3 bed semi worth £127500 as trade in for this of which we have a mortgage for £99k outstanding.

Want to port the mortgage as we can have it for 0.55% above BOE for the life of the product and extend to 25 years meaning current repayment of £569/month with Intelligent Finance.

Maximum loan is 75% leaving us to find a deposit of £22500 which we have in savings

Our combined salary is £54k and with benefits up to £58k. We have a 0% purchase repayment of £98.99 a month and credit cards of £18.5k. No further borrowings and have no adverse credit and never missed/been late with payment.

Is this doable ?

Thanks for any suggestions

TEDDYRUKSPIN

This is not the right place to ask this. Every bank will have their own criteria. Not to forget the rate you will pick, the SVR, etc etc. Oh yes, also your debt.

Unfortunately, you won't get a straight answer and especially if you are not noting what salary you have.

Being on an intelligent finance mortgage also raises some alarm bells.

Peter_L

I appreciate that nothing is quite straight forward and banks have their own lending criteria bu there seems to be a lot of knowledge and professionals on here who can differentiate between 'a possible acceptance' and 'cloud cuckoo land chance'.

I have clearly stated our incomes as 'Our combined salary is £54k and with benefits up to £58k.'

Is there something you know that I don't know about Intelligent Finance Mortgages ???

Thrugelmir

Deducting the credit card balance from your "savings" gives a totally different picture.

Porting means keeping the mortgage on exactly the same terms. So extending the term may not be an option. Worth checking.

Peter_L

Thrugelmir wrote: »

Deducting the credit card balance from your "savings" gives a totally different picture.

Porting means keeping the mortgage on exactly the same terms. So extending the term may not be an option. Worth checking.

Thanks - all credit card balances on 0% so no urgency in settling them just yet.

Strange but true that they are allowing a port of 0.55% over the period of the mortgage AND allowing an extension to (currently 15 years) 25 years. Fact is despite debt and savings the amount is just under X3 combined salary so is this possible in this current climate ?

Thrugelmir

While you have no urgency in settling the balances. When applying for the mortgage the underwriter will see them.

Putting my financial hat on, my view is that you are borrowing the deposit. So how will you repay them once the interest free period is over?

If you can afford to increase your mortgage repayments and meet credit card repayments then you are in a position to save\create more equity.

Peter_L

Thrugelmir wrote: »

While you have no urgency in settling the balances. When applying for the mortgage the underwriter will see them.

Putting my financial hat on, my view is that you are borrowing the deposit. So how will you repay them once the interest free period is over?

If you can afford to increase your mortgage repayments and meet credit card repayments then you are in a position to save\create more equity.

Hmm I see where you going with that one but there must be others out there who want to mortgage/re-mortgage with existing debt ?

The actual amount needed for the 25% will be funded through our £22500 savings and £27500 equity in our current property so that must stand in our favour ? Or am I completely missing the point/dreaming this will happen ?

Thrugelmir

Peter_L wrote: »

Hmm I see where you going with that one but there must be others out there who want to mortgage/re-mortgage with existing debt ?

The actual amount needed for the 25% will be funded through our £22500 savings and £27500 equity in our current property so that must stand in our favour ? Or am I completely missing the point/dreaming this will happen ?

Lenders have no need to take risk. They are contracting their loan books.

Shuffling money between different pots is illusory. So don't kid yourself. Debt is debt. £18.5k is a significant sum to repay. Once interest kicks in at over 1% a month.

Whilst you are on such a low mortgage rate there is no reason for you not to be saving money. Interest rates will rise at some point. Never again will .5% base rate be seen.

So make hay while the sun shines as the saying goes.

Peter_L

Just a follow up - decided to go through with the application anyway and went to underwriters (as a matter of course for all ports apparently). Got AIP in less than 24 hours and have definitely confirmed mortgage of BOE +0.55% for the life of the mortgage and have extended this to 25 years. Now for the valuation, fingers still crossed ...

Peter_L

Just another update - finally received the full mortgage offer today with all the bells and whistles quoted above. Still didn't find out why the poster above said that being on an IF Mortgage 'range alarm bells ' though ?

sophievenusdoom

Well done, and good luck in your new home