Mortgage porting - Do I have this right?

johndeere123

So we paid off our mortgage recently, it had 19 months remaining on the deal meaning an ERC of £4900 which Lloyds said we would get back if we completed on a new house within 6 months of completion on the old one.

Trying to get my head round the numbers.

Our mortgage was £180k left to pay.

New mortgage will be £200k

Does that mean £180k will be on the old rate (1.9%) for 19 months assuming a 2 year old.

Then £20k will be on whatever rate the new deal is plus after 19 months, whatever is left to pay of the £180k will go onto the SVR for the remaining 5 months?

Have I got that right? 

John 

thomas1112

We recently did this with Nationwide, so if Lloyds are roughly the same then your additional borrowing will have to be on a new product from the range at the time you applied.

The original mortgage account fixed term is paused at redemption and resumes when you complete on your next purchase. So if you had 19 months left on your fixed rate that will restart from when you complete on your purchase. The term of the old mortgage account and the new one will be aligned to whatever term you applied to borrow the money over.

So you essentially end up with two separate mortgage accounts which will be on different products with different end dates at which they'll revert to SVR.

Nationwide dealt with the refund of the ERC separately which landed in our current account a few days after completion.