Confusion, Tied into Fix and Arrrrrgh!

rachelandgromit

Yes, we have certainly considered that if we port over the £35K ish then we will obviously continue to pay this at the fixed rate 5.99 until June 2018 paying just over £1400 a month. We are then thinking of the additional borrowing of £90-£100k probably at a fix for 2 years over at which point that ends the £35k will be more or less gone and we can then literally shop around for another mortgage as we won't have the £35k/£1400 monthly payment we can then afford to just focus on getting rid of the £90-£100k. I'll ring l&c tomorrow too.

Just got to get some interest now in my property.

getmore4less

If you have reduced the term to end at the same time as the fix which £1400pm suggests then porting is likley to be the best option.

Assuming affordability will be no issue for the extra borrowing lets say £100k to give you wiggle room on your sale.

total £135k on £275k LTV <50%

£35k 5.99% £1400pm 27months.

new borrowing £100k say over 2years 2% + 3m on SVR 4.99
http://www.principality.co.uk/Mortgages/Fixed-Rate-Mortgages/65-LTV-Fixed-Rate-Mortgage-2-Year-Free-Incentives-10253
say 25y £424pm


After 27months £35k will be gone and the £100k will £93600

£1824pm over 27months £135k down to £93600

To pay the £7k fee and borrow £142k paying £1824pm to get the end amount down to £93600 the rate needs to be below 0.35%

Not going to happen.

if you stuck it all on 2% a fairly good rate after 27months paying £1824you would owe £98200. £4600 more.

That should easly cover a bit of legal to do the change in equity.

If you can get the port sorted with extra borrowing that also gives you some room to play with the price on you place to secure your future..

rachelandgromit

Thank you for that summary!

That has been really helpful. As you say once the £35k is gone we can review then but we should easily be able to pay £2200 a month then so we shouldn't have any problems paying off the remainder.