Porting Question

deano3

Afternoon,

Im looking into moving house and im 1 year into a 2 year fixed Woolwich product.

I have a property i rent on consent which was fine when the mortgage was originally taken out at 90% LTV.

I now believe that Woolwich have changed terms and condtions to state if you have a property in the background you must have at least 20% deposit, i will have 10% from equity should this move take place.

If i can port my mortgage does anyone know if it will be subject to the original terms or likely rejected due to the change in policy?

Futhermore, can you use equity to pay off credit card debt when moving, so long as you leave enough for declared deposit of course?

Thrugelmir

Lenders have to apply current terms. Not least due to the fact that statutory regulations will have changed in the interim.

You can do as you wish with the equity.

However lenders will base their decision on the facts at the time of your application.

MLSY

hi deano3

woolwich terms read
"Where any existing property is either unencumbered or is held on a Buy to Let basis, it is acceptable to consider lending up to a maximum LTV of 90%."
the btl property will be factored into your affordability calculations
the equity in the property you sell is yours to do what you want with but you will need to account for deposit , moving fees , legal costs etc

cheers Ian