Porting Lloyds Mortgage

kriss_boy

Lloyds said they would let me port my cheap 1.5% tracker... but it occured to me that they might only let me do this if I take out the additional borrowing with them.

Is this likely? Or can my next houses mortgage comprise of an 80K lloyds mortgage and a 40K RBS one?

Crashandburn

Additional borrowing would have to be with LLoyds as they are going to have the first charge over the property.

Split 80k at 1.5% and 40K on one of their other products won't seem too bad a combination to me.

Worth doing a comparison between this option and then the next best option with one new provider doing the whole £120k. Then you'll have your answer.

kriss_boy

We dont have the LTV to move the whole 120K to a new provider and get a good enough deal.

The worrying thing is that lloyds online application process warns that you need an 80% LTV when applying for additional borrowing..... but we will only have 90%...

I was told 90% was fine on the phone a couple of months back. Im praying this is still ok! I mean they let FTBs have mortgages with just a 10% deposit.. so surely we will be ok?

jackomdj

Look into you lloyds mortgage, is it lloyds or C&G? When we ported our C&G offset tracker we were able to increase the mortgage at the original rate as this was in the original mortgage terms.

Thrugelmir

Mainstream lenders will all require first charge on the property.

If LTV % is high after additional borrowing is added. Then lender may not be willing to port existing rate.

kingstreet

kriss_boy wrote: »

We dont have the LTV to move the whole 120K to a new provider and get a good enough deal.

The worrying thing is that lloyds online application process warns that you need an 80% LTV when applying for additional borrowing..... but we will only have 90%...

I was told 90% was fine on the phone a couple of months back. Im praying this is still ok! I mean they let FTBs have mortgages with just a 10% deposit.. so surely we will be ok?

You've taken the phrase "additional borrowing" and completely misunderstood its use in the above post.

That is an existing borrower not moving home asking their current lender for more money, perhaps to improve the property.

You are looking to do something completely different.

When purchasing a new property you are applying for a new first mortgage. You therefore submit an application for the amount and purchase price you need.

When you get to the product section of the application, you wish to port the amount of your current mortgage at your current rate to the first section of your new mortgage of that amount. You then get a new product for the remainder and this will be one of the lender's current products and will be based on the new loan to value.

For example, you have £100,000 at 1.5% and are buying a new property for £200,000 with 10% deposit.

You ask the lender for a new mortgage of £180,000 to which you will put your £20,000 deposit, making the total £200,000 purchase monies.

You take the first £100,000 of that new mortgage on the 1.5% rate you already have. The extra £80,000 is offered on one of the lender's new products for a 90% case. Let's say that's 5.19% fixed until 31/05/2015.

So, once you've moved, the old mortgage is paid off on completion. The new mortgage starts and it is one mortgage, split into two sub accounts. One is £100k a variable tracker at 1.5%, the other is £80k fixed for two years at 5.19%. The monthly payment will be a total of the payments on the two sub accounts.