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RBS - mortgage help
secretservice
Posts: 32 Forumite
I was hoping to hear some thoughts on my current circumstances. We are looking to move house (property just listed on market) and met with RBS to discuss our options re: porting (mainly to find out if ERC is waived if we port with them, which it is for us pheww).
The bit I can't get my head round is the additional lending part, they have done an affordability check on both me and my partner and suggested we could provisionally get the amount we are looking for quite comfortably. However, the additional mortgage balance (say 65k) would continue to be charged at 3.09% (2 year tracker) whilst our additional borrowing needs (say 52k) would be met by a 5.99% rate on a 5 year fixed product.
Can anyone shed any light on how this works? I am perhaps a little naive to it all given that it is only our second ever move. Thanks in advance for any helpful comments.
The bit I can't get my head round is the additional lending part, they have done an affordability check on both me and my partner and suggested we could provisionally get the amount we are looking for quite comfortably. However, the additional mortgage balance (say 65k) would continue to be charged at 3.09% (2 year tracker) whilst our additional borrowing needs (say 52k) would be met by a 5.99% rate on a 5 year fixed product.
Can anyone shed any light on how this works? I am perhaps a little naive to it all given that it is only our second ever move. Thanks in advance for any helpful comments.
MFW - Balance Outstanding: £66,315.45
OP's to date: £459.50
Net Interest Saving: £1,023.07
Savings - £533.74/£2,000
OP's to date: £459.50
Net Interest Saving: £1,023.07
Savings - £533.74/£2,000
0
Comments
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They give you a new mortgage for the total amount you want to borrow.
You port the rate from the current mortgage amount onto that part of the new mortgage, taking the new money you are borrowing now on whatever products the lender has available at your loan to value.
New mortgage £117,000 with current balance £65k continuing on current rate and £52k on the fix you mention.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
thanks for explaining this kingstreetMFW - Balance Outstanding: £66,315.45
OP's to date: £459.50
Net Interest Saving: £1,023.07
Savings - £533.74/£2,0000
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