Confusion on porting existing mortgage

InhaleMood

Hi all,
I wonder if anyone can help.
I am in the process of selling my shared ownership property in London and buying a house in Colchester :j
I bought my 30% share for £57,750 and it is now worth £60,000.
My remaining mortgage is £40,000.
The property I am buying is £145,000.
So, first question, am I able to use the money from my sale as a deposit?
If I can, then the £40,000 will be at my existing rate (4.29%, fixed until June 2014).
The remainder, £90,500, Santander have suggested a 2 yr fix at 4.75%.
Ideally I wouldn't get a fix, so that in June I can look at combining the mortgage, for a lower rate. Is that possible?

As you can see, I am slightly confused about all of this. I have a call with a mortgage broker later today, but would appreciate any advice!

Thanks,
Tanya

Moby_Tide

Because you are bang on 90% LTV the only options available are the 2,3 and 4 year fixes. If you can get more money and drop below 85% LTV then you can get a 2 year tracker at 4.29% or a 2 year fix at 3.79%. As it stands you are so close to the wire that if the house isn't valued at £145k they are unlikely to lend regardless

InhaleMood

Moby_Tide wrote: »

Because you are bang on 90% LTV the only options available are the 2,3 and 4 year fixes. If you can get more money and drop below 85% LTV then you can get a 2 year tracker at 4.29% or a 2 year fix at 3.79%. As it stands you are so close to the wire that if the house isn't valued at £145k they are unlikely to lend regardless

Thanks.
So, can I use the money from my sale as the deposit?
Is there anything I could do to ensure that in June 2014 I can change to the best rate for both mortgages, or is it always going to be separate?

TrickyDicky101

Your existing mortgage will be paid off from the proceeds. It is possible that you can port the existing rate over to the first 40000 of your new mortgage assuming you will be using the same lender as you are now.