Porting mortgage to higher LTV

Lukas1

I'm in early stages of moving home, and have one issue which is concerning me and hoping to get some advice/experience here.

I am in a fixed rate deal and therefore need to port my Nationwide mortgage to avoid a £10k early repayment charge. The existing mortgage is a 75% LTV deal, and the total mortgage for the new (more expensive) house and will need to be at 90% LTV. I already have a decision in principle for the total lending on the new home.

Will the lender port the 75% LTV mortgage, even though the total LTV will increase to 90%? It's not as though I'm bothered about keeping the lower rate, I just don't want to be hit with the ERC.

Thanks

Schoolworker

You will port over your existing amount outstanding on your mortgage at the same rate which is part 1 of your mortgage. Example below.
Outstanding mortgage £75000 at 2.34% - you will continue to pay this until the deal runs out if in a fixednperiod of time. If you are buying a most re expensive house and need £50000 for this you fwt another deal signed up with nationwide for this extra borrowing at the best rate they have - this is part 2.
We are with nationwide and gave part 1 and part 2 of our mortgage when we moved to this house 7yrs ago. We have recent applied and due to get extra borrowing in august from them which will be part 3 at a different agreed rate. I hopefully will to try tie up the 3 parts of the mortgage and get them at the same rate when they all finish as are within a few months of each other. Hope this understandable.

Thrugelmir

Lukas1 wrote: »

Will the lender port the 75% LTV mortgage, even though the total LTV will increase to 90%? It's not as though I'm bothered about keeping the lower rate, I just don't want to be hit with the ERC.

The mortgage doesn't get ported. Just the existing debt and the related terms and conditions. The mortgage purely relates to the legal charge placed on the property to secure the debt. Whether the lender agrees to port or not depends on their internal lending criteria at the time of application for the new mortgage.

Lukas1

Understood that the mortgage itself doesn't get transferred, its the 'related terms and conditions' that concerned me, given that we want to transfer a 75% LTV product on to a property where we need 90% LTV.

Given that we have decision in principle on a 90% mortgage we obviously satisfy affordability and credit criteria, and it's not like we're downsizing and diminishing the lender's security, so i'm hopeful that they will agree to port (and top up with a 90% LTV product)

alex_163163

We did pretty much that with Nationwide recently. You just port the rate on the current amount.
Flat I recently sold had a mortgage on 67% LTV (H2B product also).
To avoid ERC, we ported this rate on the £49k remaining, and bought a new house at 88% LTV. The rest of the mortgage amount (£135k) was made up by a second part of the mortgage (new product, different rate).

kingstreet

Any increase in borrowing will be offered on a product which matches the LTV band from 75% upwards.