porting mortgage question

maunders

I'm with nationwide and am in the process of moving house. I did my application with Nationwide the other day and have around £119k left on that mortgage. I am looking to port the rate and borrow around 169k on my next house at around 74% LTV. On my application it shows the ported amount being 119k and the new rate as 70k. However as i wont complete for some months yet what happens as the amount owing on the 119k goes down? I estimate I'll have paid around 1k off in the next three months. Will I just borrow 169k when I move and the extra paid off above will get sent to my solicitor to pay me?

holly_hobby

Yes, you'll have 1k additional equity, if you don't use this to increase your deposit and lower your borrowings, which will be forwarded to you by the solicitor following completion.

With regards to the ported rate this will apply to the os mge at redemption, so if you don't reduce your overall borrowings, it will be mean you'll have circa 118k on the ported rate and 71k on the top up product - hope thats makes sense

Best wishes in your new home


Holly x