Mortgage queries

bencherrdg

Hi everyone,

I bought my house in sept 2009 and my was deposit 25% of the house value. I took out a 5 year fixed mortgage.

I met my girlfriend (now my fiance) in jan 2010 and she moved in, in June 2010.
Weve been paying the mortgage together even thougth Im paying more thats not my query though!

We are looking to buy a bigger house meaning we need to borrow extra £30 if keeping with current provider and have started looking for houses

1) If we/I dont port the mortage and borrow from a new lender how does it work in terms of paying the loan back?
We'd have 21% deposit on new house we are looking at

2) Been getting some online mortgage quotes. Do you really have to incluse overdarughts, students loans?
What happens when it asks about current mortages? Do I put NO? - Im not looking to have TWO mortgages!!

Any help would be gratfully recieved

cheers:money:

kingstreet

The existing mortgage will be repaid when you sell your current property. Any discharge fees and early repayment penalties will be added to the balance to make the redemption figure.

Porting the rate to a new mortgage with the same lender will see you refunded the ERP, or perhaps non payable. The extra borrowing will be given on one of the lender's current offers. So, you'll have a mortgage made up of two sub-accounts with different rates on each section.

You need to weigh up the cost of porting with your existing lender to avoid the penalty and offers from other lenders where the penalty becomes a cost against the potential benefit.

bencherrdg

kingstreet wrote: »

The existing mortgage will be repaid when you sell your current property. Any discharge fees and early repayment penalties will be added to the balance to make the redemption figure.

Porting the rate to a new mortgage with the same lender will see you refunded the ERP, or perhaps non payable. The extra borrowing will be given on one of the lender's current offers. So, you'll have a mortgage made up of two sub-accounts with different rates on each section.

You need to weigh up the cost of porting with your existing lender to avoid the penalty and offers from other lenders where the penalty becomes a cost against the potential benefit.

Ah excellent thankyou very much.:)

_Andy_

extra £30? I can lend that to you if you want

bencherrdg

When you apply for a mortage online (as in my case above) do you include the mortage that you already have on our existing house?
Surely not but I want to check as it says declined when I put YES:mad:

kingstreet

No. They are trying to work out affordability. If you planned to keep that property, to let it perhaps, the mortgage would continue.

As your current mortgage will be repaid when you sell the current property, you should answer "no."

If you are planning to make a porting application, check your lender's instructions. You may be better calling them, rather than trying to do stuff online. If you're not careful, you may end up with a string of indavertent credit searches and no mortgage!

bencherrdg

ok thanks never thought of that. cheers for your help