Porting a rate

padster21

Looking to buy a new house.

We currently have £107k/16 years remaining on our current deal at 2.5% which I believe is lower than the SVR. It's with Nationwide and a carry over from Cheshire. I've spoken to Nationwide in the past and they are unwilling to allow us to carry it over or even lend extra money on those terms, which is pretty understandable.

HSBC mentioned the possibility of porting the rate over. We're looking to borrow approx another £60k and probably extend the period to around 22 years.

Question is how would it be carried over. I presume the £107k would remain at the 2.5% but would it be extended to the extra term (surely in the bank's interest) and the remainder would be at whatever terms I agreed.

Would it be possible to agree a fixed/tracker mortgage for a period and the £107k reverting the 2.5% rate at the end of this while the remainder goes to SVR?


thanks,

mrginge

I'm confused. HSBC are going to port a rate from your existing nationwide mortgage?
Are you quite sure you've not got the wrong end of the stick here?

Thrugelmir

If you remortgage to a new lender. You'll need to redeem your existing mortgage and borrow the entire sum from a product that the new lender is offering.

padster21

mrginge wrote: »

I'm confused. HSBC are going to port a rate from your existing nationwide mortgage?
Are you quite sure you've not got the wrong end of the stick here?

That's what the adviser told me yesterday but didn't push it. Seems odd to me hence me asking the question.