Mortgage Balance Between now and Completion

taylor86

I have a mortgage offer for an amount that includes porting my current mortgage and borrow an additional amount on a new rate.

it looks like I won’t now complete until next year when my mortgage balance will be lower from my monthly payments. 

Does that mean I will actually be borrowing less than the current offer or will they top it back up if that makes any sense? Will I have to plug the gap with cash? 

Bigphil1474

I would speak to the lender - presumably the offer will take into account any changes between it being agreed and actually happening, otherwise you wouldn't be able to afford the property. I would think that the new mortgage amount would go up to offset the reduced existing mortgage, but I also suspect it will depend on the individual lenders policy.

kingstreet

The amount you are borrowing is what you applied for. Within that, the amount on the ported rate will fall and the amount on the new rate will increase.

For example, you are taking a £200,000 mortgage with £150,000 ported and £50,000 new. Between now and completion the ported element falls to £148,000 and the new element increases to £52,000. The amount you are borrowing remains £200,000.

taylor86

kingstreet said:

The amount you are borrowing is what you applied for. Within that, the amount on the ported rate will fall and the amount on the new rate will increase.

For example, you are taking a £200,000 mortgage with £150,000 ported and £50,000 new. Between now and completion the ported element falls to £148,000 and the new element increases to £52,000. The amount you are borrowing remains £200,000.

Really helpful thank you