Top up or new product?

bwlv1

Hi All,

Looking for some advice please, currently with Bank of Ireland through the Post Office, we are planning to up size in the near future and will be taking out some additional borrowing, our LTV will be 75%.

My question is do I need to take the extra borrowing on one of their top up rates or can I apply for a new product with the Post Office just for the additional amount and port the existing mortgage, as they will still have the first charge on the property.

The new product rates are better than what I am seeing on the top-up.

Thanks

kingstreet

You port the rate from the old mortgage to the new one, choosing a product from the current existing borrower moving home range in the correct LTV band to cover the increased borrowing.

The first charge on the old property is removed when the old mortgage is repaid from the sale proceeds and a new deed registers a new first charge on the new property.

That's why you can't transfer a mortgage from one property to another.

bwlv1

Ok, thanks. Shame that I can't get the cheaper rate at 75% that they offer in their normal range, never mind.

kingstreet

What do you mean their "normal" range?

bwlv1

On the main Post Office mortgages website, 75% LTV 2 year fixed 2.28% product code SME.

75% LTV top up rate now showing as 3.05% code RYN.

I say 'now showing' as my key facts and application form (not yet returned) show 2.59%, which gives rise to my second question of will they honour the 2.59% or will I have to take whatever the rate is at the time of a formal offer being issued.

kingstreet

"Top up" means additional borrowing, or further advance. These are not the products which apply to you. You should look at products for existing borrowers moving home, as I said.

The sub 75% fixed rates for existing borrowers moving home are 1.93%/2.58%/2.85% depending on fee;-

http://www.postoffice.co.uk/mortgages/fixed-rate#25%

Although I must confess that website is a right dog's dinner!

bwlv1

It says those rates are for new borrowers to the post office (unfortunately), this is where I was getting my rates:

http://www.bankofirelandmortgages.co.uk/fs/doc/wysiwyg/b0345-ec-range-po-resi.pdf

kingstreet

Like I said, a dog's dinner.

I got to that product list by clicking the "Moving Home" option on the right, then the fixed rate option in the body text.

I can't find a route to get existing borrower moving home products via the PO site!

bwlv1

Yep BOI website was just as bad, when I finally found the correct one, they have about three or four different sites.

Hope their processes are better than their ICT!

Thanks Kingstreet question answered.

kingstreet

Are you in an ERP with BoI?

Could you move to a new lender and get a better rate?

bwlv1

ERP until July '16 unfortunately as there do seem to be some good rates out there, off the top of my head the charge including lending fee would be about £1100.

So over the two years I don't think there will be enough in it to change lenders, If they honour the 2.59% that is, if it increases it may become a wise idea to move...