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Remortgaging a ported mortgage and which one to over pay?
JoJoBean
Posts: 9 Forumite
Hello,
Wondering if anyone could please shed some light on this for me...getting myself a bit confused with it all!
Partner currently has two mortgage products on his home with Nationwide, 97k for initial mortgage and additional 7k he had to take out when he and his ex broke up. Both are fixed at 1.69% until Dec 2019.
We are looking to purchase a more expensive property together and port these products across (avoiding ERCs). We would be borrowing an additional 158k fixed for 5 years at 2.09%. We have worked out it will be cheaper to port rather than switch lenders when we factor in the ERCs also.
My questions are:
What happens in Dec 2019 when the 'original' mortgage products are up for renewal?
Is it a case of remortgaging these with Nationwide to a different product and can they be combined in any way? I believe I would possibly have to pay 2x arrangement fees if they could not be combined (currently 999 per product).
Also if we were going to make small and often over-repayments during this time, would here be a better one out of the three to put this extra cash into? I'm thinking the larger (158k) one as it has a higher interest rate, though also wondering whether it would be a good idea to focus the money on wiping out the smaller 7k one first.
We have a mortgage appointment in two weeks with Nationwide to complete the mortgage application (have decision in principle already) but would like to have a bit more of a clearer picture before going in.
Thank you very much in advance for any advice, very much appreciated.
JJB
Wondering if anyone could please shed some light on this for me...getting myself a bit confused with it all!
Partner currently has two mortgage products on his home with Nationwide, 97k for initial mortgage and additional 7k he had to take out when he and his ex broke up. Both are fixed at 1.69% until Dec 2019.
We are looking to purchase a more expensive property together and port these products across (avoiding ERCs). We would be borrowing an additional 158k fixed for 5 years at 2.09%. We have worked out it will be cheaper to port rather than switch lenders when we factor in the ERCs also.
My questions are:
What happens in Dec 2019 when the 'original' mortgage products are up for renewal?
Is it a case of remortgaging these with Nationwide to a different product and can they be combined in any way? I believe I would possibly have to pay 2x arrangement fees if they could not be combined (currently 999 per product).
Also if we were going to make small and often over-repayments during this time, would here be a better one out of the three to put this extra cash into? I'm thinking the larger (158k) one as it has a higher interest rate, though also wondering whether it would be a good idea to focus the money on wiping out the smaller 7k one first.
We have a mortgage appointment in two weeks with Nationwide to complete the mortgage application (have decision in principle already) but would like to have a bit more of a clearer picture before going in.
Thank you very much in advance for any advice, very much appreciated.
JJB
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