Mortgage Balance Between now and Completion

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? 

Comments

  • Bigphil1474
    Bigphil1474 Posts: 2,234
    First Anniversary Name Dropper Combo Breaker First Post
    Forumite
    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
    kingstreet Posts: 38,595
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • taylor86
    taylor86 Posts: 134
    First Post First Anniversary Combo Breaker
    Forumite
    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 
Meet your Ambassadors

Categories

  • All Categories
  • 341.6K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.7K Work, Benefits & Business
  • 605.8K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards