First active customer new mortgage

FEvans

I am currently a first active customer on a nice 1.6% rate. Now I want to move to a bigger home and have been told that i can port my mortgage to a new place.

Does anyone know what sort of rate a new mortgage will be on a bigger place and what sort of incentive will i get from first active by in effect being forced to transfer my mortgage to a new supplier

kingstreet

AFAIK you'll port the current rate to the first part of the new mortgage with any increased borrowing being on one of RBS's current products.

I don't understand what you mean by this?

what sort of incentive will i get from first active by in effect being forced to transfer my mortgage to a new supplier

MoneyJuggler

FEvans wrote: »

Does anyone know what sort of rate a new mortgage will be on a bigger place and what sort of incentive will i get from first active by in effect being forced to transfer my mortgage to a new supplier

I'm in a similar position, hoping to moving to another area , borrow a bit more and port existing.

I've spoken to them twice, with 10 months in between, and got slightly different advice each time, but as I understand it , they will effectively port my current mortgage, and then offer a different product for any extra borrowing (for me was a Natwest product).

They treat it as a new application as far as underwriting goes, so all income checks again.

I got the impression that rather than them offering up any kind of incentive as you suggest, it's more the other way around - moving house (I'm not an expert, but as I understand it) means taking out a new mortgage, so they are honouring a deal by allowing porting, even though they don't have to.

Again, as I understand it, no one is being forced to take out a different mortgage, as every move means a new mortgage.

Would be really interested to know how you get on, good luck!

Thrugelmir

MoneyJuggler wrote: »

moving house means taking out a new mortgage, so they are honouring a deal by allowing porting, even though they don't have to.

Correct. A mortgage is the legal charge that's used to secure the debt.

Porting merely refers to the contractual terms and conditions, such as the interest rate.

Any new mortgage is subject to applicable underwriting criteria at the time of application.

Many lenders are now declining the new mortgage application. Forcing borrowers to stay put or switch lenders. The latter resulting in an increased interest rate.

FEvans

in my case the new home i wanted was a new build and they wanted a 20% deposit on the new loan so it was not something i could consider