Porting existing Fixed Rate mortgage

oldie73

Hi there,

I was hoping I might be able to get some advice about moving house. We bought our first home in 2012 on chose a 5 year fixed rate deal with Santander. We are now thinking about moving to somewhere a bit bigger. I have read that it is is possible to port your existing mortgage to a new property, but just wondered how this would work if we want to increase the size of the mortgage? Also, will it end up being more expensive than if we were to wait until the 5 year fixed mortgage is up?

Any help or advice anyone can offer would be much appreciated.

Many thanks.

bigjim1974

I think you'd end up with a mortgage in two parts, your existing 5 year deal and the extra borrowing on a new deal, no doubt at a different rate

kingstreet

You apply to your existing lender for a new mortgage for the total amount you need to borrow. At completion, the rate from your current mortgage is transferred to the new mortgage and any increased borrowing is offered on your choice from the lender's current products in your LTV band.

Your new mortgage will therefore be split into two sub-accounts, one for the existing rate and one for the new one.

A mortgage is particular to a property and is repaid when the property is sold, so the actual mortgage ends and a new one starts when you move house. The rate moves from one mortgage to another. That's portability.

You have to be able to satisfy the lender's current criteria, affordability and valuation requirements.

somethingcorporate

As per post 2, you end up with 2 mortgages, different rates and usually with different end dates on the fixed elements.

We've recently done this with Nationwide and can see both elements on our online statements.

millysg1

We did this last year. Had an outstanding £93k mortgage with a rate we did not want to loose. Bank agreed to port to new house but we needed an mortgage of £175k.
We now have two mortgages with two payments. We are still paying off the £93k with the same monthly payments. We also have a new mortgage, we picked from what they had on offer at the time, with a new rate for the additional £82k. We then also pay this amount monthly. We have tied our end dates together (give or take a month) and therefore, both had 22 years left when we moved.

Just be wary of you LTV!