Can anyone help me to work out the cost of running two mortgages simultaneously?

swishy87

Hi, I wondered if anyone can help me to understand this better please.

I currently have a mortgage with Santander that's fixed for about 3 more years with an early exit fee. A house we want to buy has come up earlier than expected so I am looking into options. What I can't work out is how to work out what the monthly repayment charges would be on the extra money borrowed as I don't know how to work out the LTV if some of the money is already borrowed. Can anybody help me? I know I can call but they are closed until Monday now and we're currently trying to negotiate on a new build so I could do with seeing what's affordable.

Thank you in advance!:beer:

MortgageMamma

Hi


You don't say if your property has already sold or any background information, you'll also have to put some numbers on such as monthly payments, amount outstanding, is it capital and interest or capital repayment, term.


How much needed to borrow new property, where deposit is coming from etc.

swishy87

I just wondered initially if there was a way to work it out.

Basically then it's for a part ex.

By the time we come to complete these will be the figures
£116,800
21 years 10 months (although will be extended to 25 years)
3.49% interest rate
Monthly payments around £630 p/m

Extra needed to borrow £171695, (for a house costing £354,995) deposit £65500 (coming from the sale of the current property)
Not sure of interest rate as don't know how to figure out ltv on another mortgage.

I hope that clarifies things a little bit.

MortgageMamma

How much is your existing property worth? where are you in the legal process with that one?


You have a couple of options.


1. If you have the affordability and deposit you could buy the new property and wait for the other to sell.


2. Depending on where you are in the process you could buy the new one but set your completion date to coincide with the completion of the sale of your old one. As long as all parties involved accept this it could work.


3. You could explore the potential for short term bridging finance to fund the second purchase, although that is dependent upon your circumstances.


Its not a straightforward yes of no situation, you need a professional to look at the finer details to see if its a viable option for you or if you'll just have to wait until your sale is complete.

getmore4less

Just use your total borrowing.

Are you sure you can port the current mortgage?

swishy87

Santander have already said we can just run a mortgage alongside our current to make up the rest of the money we need, I just don't know how to work out the monthly cost. Alternatively we will just pay the fee and get a whole new mortgage. We will be part ex with a new build so all will complete on the same day.

Keith99

It sounds like you want to port your mortgage and then get a further advance on top?

If so - http://www.santander.co.uk/info/mortgages/additional-loan-calculator

should be able to help

swishy87

thanks, that has been really helpful. Although it tells me less than what Santander said they would lend so hard to work it out exactly.

Okydoky25

We are doing the exact same thing with Santander now.

Sums were Original Mortgage left was £130465.72
House sold for £180000
Released equity of £49534.28

New house purchase £300000
Deposit £30000 10% of total 25 year
Old mortgage staying the same at £788 new mortgage is £699 (better rate then the 1st) Total £1457.

It worked out cheaper over the same period then paying to get out of the fixed rate.