Higher lending charge?!!

MarkyMarkD

doug

Your question doesn't make sense. If you port a product, you pay the rate you were originally paying, i.e. 4.75%. And if the original product didn't have subsidised HLC, there's no reason why you should get it when you port the loan to a new property - even if they are currently offering a product which DOES do so.

dougk_2

MMD, I admit I worded it bad!
What I meant to say was it a true port - or offering a new deal.


A friend moved recently and he wanted to borrow more (up to 95%) of the new property. He did not get charged a HLC as he had a ported part and a new part - The new "deal" did not impose HLC's though the old one did. They offered him the choice to move it all to a new "fixed rate" as well with no redemption fee.

I realise that the OP does not want to borrow more.

What I was saying was negotiate with the lender - they want you long term don't they? Perhaps they would be happy for him to move to a new fixed rate if the % is slightly higher and not charge him either the redemption fee or the HLC.

Doglover88

cheers people thanks for your advise.. one more thing tho

My initial loan was for £122,000 and i only put up £8,000 deposit on a £130k purchase 2 years ago, wouldnt i have incurred the HLC then?
Or is it applied everytime you move? Seems silly to me if its the same mortgage...
Oh, and B&West anything over 85% loan incurs the HLC

thanks again
glen

dougk_2

Yes it would be applied each time you move if the new LTV amount is above the threshold (90% most but in your case 85%).

MarkyMarkD

Yes, as doug says. It's not "the same mortgage", it's a new mortgage which happens to be the same amount!

The risk to the lender on the 2 year old mortgage is far less than it would be on a new mortgage for the same amount, as the value has increased (presumably) and so on.