Rough idea of monthly repayments when porting a mortgage.

Thrugelmir

ThisTime wrote: »

Thanks again for your help- £100 a month less would be a bonus. going to look into help to buy to so that may help me initially.

Thanks again :T

At 6.5% interest which is closer to the norm You are looking at repayments of £1800. Extending the term may be shortsighted.

ThisTime

Thrugelmir wrote: »

At 6.5% interest which is closer to the norm You are looking at repayments of £1800. Extending the term may be shortsighted.

Ouch ! Will sit down and look at it all. Thanks

jackomdj

Go back to your original mortgage info and read what it says. Not through your co but we were able to port our mortgage but our product was such that we were able to add our additional borrowings at the same rate and increase the term of it all (when we did it the mortgage advisor said she hadn't seen anyone with such a good deal for a long time :-). )

ThisTime

jackomdj wrote: »

Go back to your original mortgage info and read what it says. Not through your co but we were able to port our mortgage but our product was such that we were able to add our additional borrowings at the same rate and increase the term of it all (when we did it the mortgage advisor said she hadn't seen anyone with such a good deal for a long time :-). )

Ok, will try and dig it out - that would be great ! Was you still in fixed term when you did this ?

Brighty

Am i right in thinking that as your rate is 2.5% that you are no longer in a product and are sat on NW's standard variable BMR rate? If so i'd ask them if that is portable, i'd think possible not as it's a rate NW aren't fond of and will do anything to get people off of. Also that rate is exposed to any BofE rise, to it that goes up 1%, so will your ported rate.

Brighty

jackomdj

ThisTime wrote: »

Ok, will try and dig it out - that would be great ! Was you still in fixed term when you did this ?

Ours is not a fixed term as such. We have a life of mortgage BOE tracker, BOE plus 0.75%. I agree that this will go up if BOE base rate increases so does the mortgage rate, but I think base rate will not suddenly go up by the % it would take to meet most standard mortgage rate %.

Psychofly

I'm by no means an expert at mortgages and I struggled to find the information I needed online regarding porting. This is my experience with RBS with numbers simplified a bit for ease. Hope it makes a bit more sense of the process:

Current Mortgage Outstanding With RBS : 51000 @ 5.9% with 28 years left
Current property sold for : 70000
Equity left after sale : 19000
Equity minus fees : 16000

New House bought for : 132500
-10% Deposit : 119250

So the way it worked was the 51000 left on my current mortgage stays on the same rate of 5.9% and the mortgage term on this, Part 1, stays at 28 years and stays on the fixed rate of 5.9% for the remainder of the 5 year fixed term I initially had. In this case 3 years left.

The difference I need (i.e. 119250 - 51000 = 68250) becomes a new mortgage and is calculated at current rates so in this case I decided to take the 68250 over 30 years on a 5 years fixed term at 5.09%. This is Part 2. Payments can be roughly calculated by using online calculators like the one on this site (http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator). It works out at about £370 per month.

So my total new mortgage on the new property is the cost of Part 1 (on my original mortgage terms) £310 plus the cost of Part 2 on current mortgage terms £380 for a total monthly payment of £690.

Now the way it works moving forward is Part 1 has 3 years left of a 5 year fixed term. Part 2 has just started on a 5 year fixed term. So in 3 years time Part 1 of the mortgage (and ONLY part 1) will move to the variable rate and Part 2 of my mortgage will remain on it's 5 years fixed term for a further 2 years when it too will move onto the variable rate.

I hope that helps clarify things a little because I was a bit confused until during the application itself when the numbers were confirmed to me.

Be very aware though that porting is in no way guaranteed. I passed the RBS credit check with no problems, got all the paperwork, signed it and took it along with my payslips, ID and bank statements into the RBS for them to scan and send off. The next morning (last Friday) I got a call from the underwriters saying they couldn't underwrite the mortgage because of poor current account conduct. The issue was I had a charge of £20 2 months ago for entering an unauthorised overdraft. Even though I corrected this as soon as I saw it and could prove I had money in savings RBS would not budge. They told me in order to appeal I could only do it through the person who completed my mortgage application and I've been waiting since Friday 14th Feb for an 'urgent' call back to start this process. Although I've asked various people at RBS nobody would give me the appeal procedure or tell me how long it would take. They all insist the only person I can speak to is the mortgage advisor I applied through and although this person is an RBS mortgage advisor nobody seems to be able to put me through to them. Be aware that porting is NOT an automatic or guaranteed process.
I have since gone to HBOS (my own bank) and been told as far as they are concerned I have an A1 credit rating and they hope to have the formal offer to me within the week.
If there is anything in your credit or account history that could be an issue try and consider any and all alternatives in advance in case you need to fall back on them at any point.
Good luck.

kingstreet

ThisTime wrote: »

would i be able to extend the term of existing (as well as new ) mortgage to a 35 year term ?

This would depend on your current and retirement ages.

going to look into help to buy to so that may help me initially.

It may if you are looking to buy a newbuild. If not, the HTB - Mortgage Guarantee scheme is not offered by Nationwide but you are looking to put down over 15% deposit anyway, making it pointless.

It seems like you need proper professional advice, so find yourself a good whole market broker. Ask friends and relatives for a recommendation.