Questions about additional borrowing.

bclark

A few possibly daft questions about some additional mortgage borrowing I want to make for a new home.

I have an existing mortgage of £130k and I am looking to move house to one that costs £80k more. I want to port my rate for the existing borrowing, which is with Nationwide and my question is do I have to get this additional borrowing through the same lender?

Secondly looking at the rates available it depends on the LTV, am I right to assume this will be worked out by the total borrowing including the existing mortgage rather than just the LTV level of this additional borrowing?

Thrugelmir

Your mortgage needs to come from one lender.

The LTV is calculated by dividing the total required mortgage by the property valuation.

kingstreet

bclark wrote: »

A few possibly daft questions about some additional mortgage borrowing I want to make for a new home.

I have an existing mortgage of £130k and I am looking to move house to one that costs £80k more. I want to port my rate for the existing borrowing, which is with Nationwide and my question is do I have to get this additional borrowing through the same lender?

Secondly looking at the rates available it depends on the LTV, am I right to assume this will be worked out by the total borrowing including the existing mortgage rather than just the LTV level of this additional borrowing?

You're taking out a whole new mortgage for £210k, and paying off your current one. The first £130k of your new mortgage will be on your existing rate for the time you have left and the extra money can be on whichever Nationwide product you choose from those for which you qualify.

Otherwise, you could take a whole new mortgage with a new lender and pay any penalty due to Nationwide, if it's in your interests to do so.