'porting' a mortgage...

james3333

hi guys,
i have just renewed my mortgage deal ( 3 years fixed @5.5%) with halifax.
however, i am thinking of moving in the coming year and was wondering about 'porting' a mortgage, it will only be my second house and i have never done this before.
if i move up the ladder to a 180k house (in a 135k house now, with 85k still owing) what will the process be?
will the extra cash i would need simply be added to the 5.5% 3 year fixed mortgage or would i need to get a new mortgage deal
if the Boe interest rate goes up ( which it obviously is going to) will this affect anything?
any advise very welcome.

thanks

herbiesjp

There are no guarantees that the "porting" will be agreed.

It will be subject to a whle new application/underwriting process.

So your income will need to be enough to support your current mortgage/current other debts, and the increased mortgage amount you are looking for.

Any extra borrowing needed will not be on the current fixed rate, but on their rates available at that point in time

If BoE goes up it will not affect your repayments on the current deal, however rates may increase for the extra borrowing that you may need when you come to move

HTH

james3333

i see.
thanks for that, mmmmm not looking good for me then to move if interest rates go up and up....

herbiesjp

Your 5.5% will be safe, just the extra borrowing will be an unknown quantity at the moment until you find a property and the see what the deals they offer you are like at that point in time

HTH

james3333

so the remaining 85k will stay @ 5.5%
but, the extra say 45k needed to buy a 180k house will be charged @ (roughly 6% if i can get that when the time comes)

herbiesjp

Yep - that looks like you have got the idea