Porting, extending borrowing and changing LTV

grumpy83

Hi,

I've got a complicated question about mortgage porting. I've tried asking my lender (Nationwide) but can't seem to get a clear answer, so any help would be appreciated, whether specific to Nationwide or from experience with another bank.

Let's say I've got a fixed rate mortgage with a few years to run. The balance is £115k on a property worth £245k, the fixed rate product was for <60% LTV.

Then I move home and port the mortgage, but need to borrow more - lets say increasing my mortgage balance to £250k, so an additional £135k, on a property worth £375k. So now my overall LTV is 250/375 = 67%.

They've told me that I would be able to keep the <60% LTV rate for the original £115k of borrowing. The additional £135k of borrowing would be on a new rate as per their product range at the time. But what LTV would they use for this new product? 67%? Or do they somehow split my equity between the two bits of the mortgage?

Any help would be much appreciated.

Thanks,
James

kingstreet

They use the new LTV, 67%.

You are taking out a whole new mortgage.