Porting Advice

jc86

Hi,

After anyones experience on porting:

We have 6 months left on our current product with Woolwich, and would like to move before we are "unlocked" if possible.

We have found a potential home and I have spoken to Woolwich about the situation:

Our house sale is expected to be 145k
The home we are after is 320k.
Our current mortgage has 92k outstanding (so we have 53k equity in the house). If we add some of our savings to this, and allowing for all the fees in moving, we can get to a total of about 83k.

So at the point of moving, we have a 96k loan, 83k equity, and hence require a new mortgage for the other 141k to take us up to 320k. Im *guessing* this would mean an 80% LTV product which we are comfortable with. Woolwich have indicated that this would work fine.

My question is this, if we take out a new product for the 141k in say October, that might run for 2 years to October 15. Thats fine. However, come January, we will also want to re mortgage the other (92k) loan. Hence we will constantly have two mortgages, two arrangement fees each time we re-mortgage etc, which is potentially messy if we wanted/needed to move.

My only thought is if we took out a new product on the 141k, running to (for example) October 15. We would then have to absorb an arrangement fee in January to get a mortgage running to (for example) Jan 16. In October 15 we would then have to revert the 141k loan to the SVR for a few months before re-mortgaging and aligning the two loans into one. So I guess that works, other than the extra arrangement fee in January and the additional monthly payment as a result of reverting to the SVR for a few months. It doesnt seem that Woolwich will let us consolidate the two into one loan at any other point, which seems awkward.

Easiest thing will be to wait until January when we are "unlocked" and choose a single new product with the best provider?

[Deleted User]

Not an expert by an y means but what I would take into consideration as well would be:

* What will the Early Repayment Charge be if you wish to exit your current fix early?

*How is this likely to compare to the cost of arrangement fees and any other potential costs?

jc86

Thanks, early repayment about 2.7k, I think additional arrangement may work out at about 2.4k, so not much in it. Loathed to give Woolwich something for nothing but also loathed to let house(s) we like get away!