New mortgage vs existing

Troughton

Hi all,
I am a first-time home owner, who is nearing the end of my mortgage and I will have the ability to pay  the rest of it off in full this year. In the coming few months I will be selling my home and buying another. The house I am looking to buy will cost more than the value of my current home which means I will need to borrow more to facilitate the new purchase. My mortgage is currently with Lloyds, and I will look to stay with them for the new house purchase. My question is am I better off keeping the current mortgage going and transferring it across to the new property which will also mean increasing said mortgage, or am I better off paying off the current mortgage in full and starting a new one for the new house? I presume the latter will mean paying the product fee all over again (of around £2k) and therefore keeping the current mortgage live is perhaps better? (because I will avoid this new product charge). Apart from this, what are the pros / cons of keeping and adjusting the existing mortgage vs getting a new one? 
Thank you in advance for your tips and advice.

dimbo61

Have you got any early repayment charges on the current mortgage if you pay it off this year ?
Why just stick with Lloyds ?
You can't be sure that you are getting the best  deal for the new property ?
Why not shop round yourself or use a broker.

Troughton

Thanks, dimbo61. Please assume the best deal I get is with my current provider (it isn't, but that is not relevant to my question). I want to know is there merit in purposely keeping an existing mortgage alive and transferring it across. The deals that other banks offer is an obvious benefit that may be missed but that aside, is there any other reason? Please also assume no early payment charge.

dimbo61

Your applying for new lending so will have to go through  full affordability checks, credit checks, etc.
Being  an existing customer will help as you have history with them as long as you have paid the mortgage every single month with No arrears ? 
This is your first home and you can already afford to clear the mortgage !
Depends on so many factors such as income, age, amount you want to borrow.
However wanting to stick with one lender( Lloyds ) may signal to me that we don't know the full story why and that is your business.
Maybe a broker might help ?

[Deleted User]

Porting the mortgage will allow you to use an interest rate that might be lower than what is currently available.  
If you are borrowing a larger sum (over £180k ish maybe), then a product fee would be payable to get the best rates.  If you have a similar rate on the current loan then you wouldn't pay the product fee.

Otherwise it wouldnt make the process any easier.  Same situation with a full application required and same credit requirements. 

Troughton

Deleted_User extremely helpful, thank you

getmore4less

one issue with porting is they may not lend the higher amount.

If sticking with Lloyds and doing a top up what sort of fee differential are there 
a quick look saw a 0.35% difference for £999 fee on a 5 years fix.
the break even for that was under £70k

Troughton

very helpful, thank you