Porting with C&G plus additional borrowing.

paul090971

We are waiting to exchange contracts but have effectivly sold our house.

We owe £111k ( 17yrs left ) with C&G, our 5 year fixed finishes in Feb 12 and then goes to 2.5%. I have been told we can port within 12 months should we find a property we like.

Well we have but we are still going to move out & rent for a few months. If the proceeds from our sale pay off the mortgage & we then borrow £200k ( 80% LTV) off C&G withing 12 months how does the porting work.

WIll it be £200k @ 2.5% or will they say "well you owed £111K so we will lend you £111k @ 2.5% and £89K at which ever current product we have available" ????



Thanks Paul

Wh05apk

You will port your current balance, any additional borrowing at new rates, whatever they might be, as here: http://www.cheltglos.co.uk/mortgages/existing-customers/move-home-without-moving-your-mortgage/index.html

paul090971

There wont be any balance as the sale of the house will pay off the loan or am I getting confused. Do you mean whatever was outstanding when paid off ie £111K will be available to me at 2.5%?? & the rest £89 at new product rates

Paul

Wh05apk

yes, sorry, the £111k (balance when repaid!) will be at 2.5%

paul090971

Thanks for that, damn shame as £200k at 2.5% would be very nice.

I guess I have to compare £200K with a new lender compared to £111@ 2.5% plus £89k @ what ever products they have available.

Thanks for the prompt replies

Paul

paul090971

Well I think the wife is going to kill me when she is back from work. We have 70K for a deposit and I have been showing her £250K plus houses, we earn £51k between us BUT because we have 2 kids & a Buy To Let its reduced the amount I can borrow by £79,781.

Wh05apk

If you are looking at a mortgage of that size, you would probably do better moving elsewhere, you should be able to get the whole mortgage at 2.5-3% quite easily beating C&G's overall package, albeit you will lose the svr @2.5% other lenders should be able to lend you around the £200k level reasonably easily.