Porting Mortgage

lavster

Hello,
We’re in the process of moving house , we’re tied in with Santander until Next March so we have to port the mortgage.

I understand that I can transfer my existing balance on my existing rate and new borrowing on a new rate. What I don’t understand is what happens next year when that initial rate on my old balance expires. Does it jump that part of my mortgage to the rate of the rest of the mortgage or to a variable rate?

My mortgage advisor said they could sort it next March but I don’t really want to resign that deal and have to keep renewing each part of the mortgage every year and leave me stuck with Santander for even longer.

Jrose1927

I'm in the same process right now

Initial rate is 1.85% tied until March
I was set to take out additional borrowing at 1.95% for 2 years

Problem is if you want to change lendor in future you have to pay repayment charge on one part of the loan as it will always overlap, it depends if your going to stay with the same lender

I opted to pay 800 early repayment charge just to get my loan as one my new rate is 1.95 for the whole amount yes it's more than my original interest but as you have 2 sets of Intrest to pay in The long run you'll pay more and always have 2 loans separate making it harder to move lender, of course there's ways around it but I'm making mine simple, il gain more than £800 by saving £50 a month for 2 years on my deal

This is my outtake on what I've done of course others will differ.

lavster

Jrose1927 wrote: »

I'm in the same process right now

Initial rate is 1.85% tied until March
I was set to take out additional borrowing at 1.95% for 2 years

Problem is if you want to change lendor in future you have to pay repayment charge on one part of the loan as it will always overlap, it depends if your going to stay with the same lender

I opted to pay 800 early repayment charge just to get my loan as one my new rate is 1.95 for the whole amount yes it's more than my original interest but as you have 2 sets of Intrest to pay in The long run you'll pay more and always have 2 loans separate making it harder to move lender, of course there's ways around it but I'm making mine simple, il gain more than £800 by saving £50 a month for 2 years on my deal

This is my outtake on what I've done of course others will differ.

Thanks for this, sadly out early redemption fee is £4800! If it was only £800 we probably would be doing the same as you.

Jrose1927

£4800 is alot is this the figure they've given you?

Im with Principality and basically early repayment next month would be even cheaper depends how long you've left on the deal sort of thing, santander must be different.

Someone mentioned on the forum before if you did have 2 separate loans and stayed with your lendor for say 5 years, you can alter the gap by renewing one 3 months early each time then over time the contract end dates would be simular so easy to change to one, obviously it is hassle and stuck with the same lendor but for £4800 there's no chance I'd pay the get out fee, will be interesting to see others replys on this one.

Good luck

lavster

Jrose1927 wrote: »

£4800 is alot is this the figure they've given you?

Im with Principality and basically early repayment next month would be even cheaper depends how long you've left on the deal sort of thing, santander must be different.

Someone mentioned on the forum before if you did have 2 separate loans and stayed with your lendor for say 5 years, you can alter the gap by renewing one 3 months early each time then over time the contract end dates would be simular so easy to change to one, obviously it is hassle and stuck with the same lendor but for £4800 there's no chance I'd pay the get out fee, will be interesting to see others replys on this one.

Good luck

Sadly yes... I agree its an insanely high redemption figure.

Im just trying to figure out what happens next march to the existing rate, will that shoot up to variable?

Thrugelmir

Defaults to the SVR or the rate as determined by the terms of the existing product.

In effect you'll have two 2 sub mortgage accounts running independently of each other.

Jrose1927

Mine went up to 4.5% so I couldn't afford that for a year and a half just until the other loan expired and of course no brainer with my exit fee

You may want to check your standard variable rate but its obviously higher and its a long time to be on that rate your looking around a year and a half if you tie in for 2 years

Jrose1927

You can tie into an other 2/3/5 year deal in March, don't forgot most lenders will let you renew early so you may be able to in December which effectivly brings your loans closer do that a few times and they'll basically be the same end dates

lavster

1 thought, would be able to put my new borrowing onto a tracker that has no termination fee, hope nothing drastic happens between now and March then refix both or move lender in March?

LRmortgage

Lavster, that’s what I would be doing. Then you can tie them together much sooner or even remortgage with another lender.
Just make sure the tracker doesn’t have an ERC. A lot don’t, but double check.

lavster

LRmortgage wrote: »

Lavster, that’s what I would be doing. Then you can tie them together much sooner or even remortgage with another lender.
Just make sure the tracker doesn’t have an ERC. A lot don’t, but double check.

Great! Will get onto them monday