Porting from Santander fixed rate with help to buy

MonkeyfaceGY

Hi
My brain is fried trying to work out what to do for the best
Does anybody have any experience porting when moving house while tied into Santander fixed rate mortgage?
To complicate matters we have a help to buy loan to pay back when/if we move house.

a bit of background....due to uncertainties in the industry i work in we were looking at moving from our nice 3 year old house to something cheaper in an attempt to reduce our outgoings.

I originally based my mortgage research on the current best mortgage rates, but then i realise we are tied in for 2 more years to our 3.44% fixed deal with Santander.
Then I learned about porting your current deal which basically seems to me the lender can refuse to let you move the mortgage or possibly alter the terms.
The rough numbers are we owe 150K and would be looking to borrow about the same or less on a new house.
(The equity in our home pays off our help to buy and should provide a nice little deposit)

So are Santander likely to lend to us at our current rate? an improved rate? worse rate? and could we adjust length of mortgage?
baring in mind we have never missed any payments, in fact have over paid and have excellent credit history.

PS I used the should i ditch the fix based and fees to ditch i would need a mortgage at less than 1%

kingstreet

You need to go through the usual affordability and status checks as you would with any other application.

If the lender is happy to lend to you, the rate from your old mortgage will be transferred to your new mortgage on completion day when your current property is sold, the existing mortgage repaid, the new property purchase finalised and your new mortgage starts.

If you need to borrow less than the current mortgage amount, you will pay a proportionate penalty based on the amount repaid. If you need to borrow more, you will be offered that on one of the lender's current products based on the new loan to value (total amount borrowed divided by property purchase price).

NB If you borrow no more, you do not get a free valuation from Santander!

MonkeyfaceGY

Thank you fir the reply
Was planning on borrowing less, i.e. Paying a bit off when we sell to get our monthly payments down, but looking at it if we were stuck on our current rate then our payments probably wouldn't come down that much. Think we are !!!!!!ed

So do you think I am right I'm thinking my options are we have to pay a chunk out of our equity as an early repayment fee to get out of current deal
.. or borrow more than we wanted to, to get competative rate and lower monthly payments
...or borrow less stuck on our rate we are now thus not bring payments down much?

Thrugelmir

MonkeyfaceGY wrote: »

The rough numbers are we owe 150K and would be looking to borrow about the same or less on a new house.
(The equity in our home pays off our help to buy and should provide a nice little deposit)

Then you need to rethink your plans. As while you are effectively reducing future outgoings. You aren't addressing the current situation i.e. no reduction in outgoings. Nor factoring into the equation that at some point in time interest rates may well rise. So any savings maybe short lived in the medium term.

Think we are !!!!!!ed

At an interest rate of 3.44% one does wonder why. Not mortgage related I know. Have you reviewed your outgoings to see what savings could be achieved. Pay a visit to the Debt Free Wannabe forum. Plenty of good advice and support over there.

MonkeyfaceGY

We currently manage fine with our outgoings but the concern is that we have recently been told that in 18 months my place a work is planning to close and it is extremely unlikely I will find a job that pays anywhere near what I get paid now. (More likely will have to take something paying half my current salary) This is why we are looking to reduce our our goings now.

Thrugelmir

You appear to have some time yet to overpay the mortgage/ save before needing to sell your existing property. Would result in a requirement to borrow less with a new mortgage.

Another option could be to extend the term of the new mortgage. That's one way of reducing your outgoings.