Porting & getting a second mortgage

gingerninja92

Hello!

Sorry if this subject has already been broached, but I can't find an answer anywhere!

We're hoping to buy a new house but have just over 7 years left on our mortgage with a hefty get out clause. It should be possible to port this mortgage (I asked when we took it out) but we will need to take out a second mortgage to be able to afford the property. What I can't seemingly find is whether the second mortgage needs to be at the same LTV as the original mortgage, or whether they can be different LTVs? Current mortgage is 80% but we were interested to see if we could get the second one at 90% (I appreciate they will both have to be the same LTV to eventually combine them)

Thanks for any help!

kingstreet

Not the way it works. You are porting the rate, not the mortgage.

Your mortgage is repaid from the sale proceeds and you would before then have applied to your current lender for a new mortgage for the total amount you wish to borrow.

The rate from your old mortgage will be transferred to the new mortgage on completion day. Normally, any increase in your borrowing will be based on one of the lender's current products based on the overall loan to value. That's the total amount borrowed divided by the property value.

The end result is one mortgage split into different sub-accounts where the amounts and rates reflect the different transactions at different points in time.