Porting Mortgage Questions

rachelandgromit

I am so confused. I am on a long fix at 5.99%. It has never been viable to ditch my fix due to the large fees involved. My mortgage is paid up in June 2018 but as it stands the account is subject to early repayment charges until 30/06/2018 of £7,080!

The account is in my name but me and my partner want to look for somewhere bigger. My current property is worth around £160000 (thats a realistic price but may be more) and we would be looking at somewhere around £220000. We would still hope to have the mortgage paid off by 2018 or if we were being less ambitious perhaps an extra 2 years but we so have savings too. My mortgage company say they can port it over. Does this mean any additional borrowing is at 5.99% too? Can anyone explain this for me.

jacobtheamish

Hi

Which lender are you with? Most will port a mortgage to a new property and further borrowing would be on a new current product. Speak to a broker who would advise best options moving forward

rachelandgromit

jacobtheamish wrote: »

Hi

Which lender are you with? Most will port a mortgage to a new property and further borrowing would be on a new current product. Speak to a broker who would advise best options moving forward

It is the Principality Building Society.

Thrugelmir

Additional borrowing would be in the form of a new product applicable at the time of application.

Are you maximising the opportunity to overpay your current mortgage.

rachelandgromit

That's another saga, overpayments not allowed! The fix was for 10yrs and they did allow us to change the term of the mortgage though for a £25 fee so we reduced the term of the mortgage to that of the fixed rate so when the fixed rate is up our mortgage is paid. That's the best we can do. Seems annoying when we have £10k saved!

jacobtheamish

The little welsh BS is the only lender I can think of that does not allow overpayments, it has become the norm with standard residential mortgages now and some buy to lets. Fixing a mortgage for 10 years can be a good idea for some but doing it with a lender that does not allow overpayments makes it not such a good idea. Something a decent broker would of discussed presubmission

rachelandgromit

I know :-(

That said with the repayments the maximum they can be I doubt we would be making additional repayments. The savings we have have been more through a couple of unfortunate events rather than the norm and are for rainy day, e.g. likely to need another car within a year etc..