Downsizing and increasing our LTV

alexscoines

Hi,

I'm hoping someone can advise while I wait to hear from my financial advisor.

We are downsizing, and hoping to port our current mortgage of £320k. Our current loan to value is 46% (we have help to buy which brings it down).

We would like to move to a cheaper property (as paying off our HtB). If we port our current mortgage it would mean our loan to value would go up to 64%. 

Has anybody been allowed to do this with their lender? We are with TSB if that makes a difference.

I am keen to hear other people's experiences of downsizing, porting, and changing your LTV.

Thanks,
Alex

Hoenir

Unusual transaction but in essence no different to any other house sale/purchase.  Lender will only be concerned with affordability and the property being adequate security for the mortgage advance. 

MWT

I can't comment specifically on TSB, but it is not uncommon to find that the port requires the LTV to be the same or lower than the current LTV.

In this case though it may not be an issue as the new LTV is still low enough that it might fit within the original product limits.

If not it can mean that the whole loan amount cannot be ported and any part that has to be repaid can trigger an ERC ...