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  • FIRST POST
    • SpiraliS
    • By SpiraliS 12th Mar 18, 1:41 PM
    • 13Posts
    • 9Thanks
    SpiraliS
    Moving house during fixed rate?
    • #1
    • 12th Mar 18, 1:41 PM
    Moving house during fixed rate? 12th Mar 18 at 1:41 PM
    Never moved house before,

    Current mortgage is 200,000 @ 2.49% (5 year fix Jan 2017 with Santander, so just done 1 year of it)
    Hoping to sell this house this year for 300,000
    Hoping to then buy a house worth (say) 500,000.

    Santander say the mortgage is portable. But how does this actually work in reality? Once the house is sold, great we have 300,000 in the pocket but does that then pay off the original 200k mortgage and I start again with a fresh mortgage? Or does the existing mortgage stay untouched and Santander give me a 2nd mortgage at a completely different rate? Can you even have 2 mortgages on one property?

    Any help really appreciated
    Feb 2018 diary:
    Debt: 13,169.83 (all on 0% CC til Sept 2018, repaying 333 a month)
    Mortgage: 193,535.06 (on Repayment, 5-yr fix @ 2.39%)

    Savings: 8,600 in various accounts all @ 5% interest (drops to 1% in March, after which will use total to pay off some of 0% CC)
Page 1
    • Thrugelmir
    • By Thrugelmir 12th Mar 18, 3:43 PM
    • 58,528 Posts
    • 51,884 Thanks
    Thrugelmir
    • #2
    • 12th Mar 18, 3:43 PM
    • #2
    • 12th Mar 18, 3:43 PM
    Or does the existing mortgage stay untouched and Santander give me a 2nd mortgage at a completely different rate? Can you even have 2 mortgages on one property?
    Originally posted by SpiraliS
    This is the principle. The existing loan is transferred to the new property. Any new borrowing will be a separate loan in the form of a mortgage product currently available to you.

    There is only one mortgage on a property. As this is the legal charge placed by the lender to secure the total debt owed. You'll have two loans / sub accounts to finance the purchase of the new property.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • DragonQ
    • By DragonQ 13th Mar 18, 8:29 AM
    • 2,000 Posts
    • 676 Thanks
    DragonQ
    • #3
    • 13th Mar 18, 8:29 AM
    • #3
    • 13th Mar 18, 8:29 AM
    This is the principle. The existing loan is transferred to the new property. Any new borrowing will be a separate loan in the form of a mortgage product currently available to you.

    There is only one mortgage on a property. As this is the legal charge placed by the lender to secure the total debt owed. You'll have two loans / sub accounts to finance the purchase of the new property.
    Originally posted by Thrugelmir
    If you port an existing mortgage to a new property and you need a second loan to make up the shortfall, I assume it has to be with the same lender as your original mortgage in that case? I guess that's a disadvantage of long-term fixed rates then: if you move, you're stuck with one lender and their rates at the time might be bad.
    • bertiewhite
    • By bertiewhite 13th Mar 18, 8:36 AM
    • 1,064 Posts
    • 1,180 Thanks
    bertiewhite
    • #4
    • 13th Mar 18, 8:36 AM
    • #4
    • 13th Mar 18, 8:36 AM
    When I bought my last house, I was in the middle of a fixed rate period. As the new house was cheaper than the one I was selling, Virginmoney effectively gave me a new mortgage but kept the existing fixed rate period.

    I guess it depends on your circumstances & lender.
    • dimbo61
    • By dimbo61 13th Mar 18, 9:28 AM
    • 9,880 Posts
    • 5,315 Thanks
    dimbo61
    • #5
    • 13th Mar 18, 9:28 AM
    • #5
    • 13th Mar 18, 9:28 AM
    You need to consider the Loan To Value !
    When you took out your 200,000 mortgage was the LTV 75% or less ?
    If you move to a bigger property and can't put more equity into the purchase they may not allow you to port the mortgage.
    Example house 270,000 deposit 70,000 and mortgage 200,000 therefore LTV under 75%
    New house 360,000 deposit 90,000 (25%) and ported mortgages 200,000 Plus 70,000 new mortgage
    This depends on your income and Santander lending criteria.
    • sitesafe
    • By sitesafe 13th Mar 18, 9:36 AM
    • 446 Posts
    • 853 Thanks
    sitesafe
    • #6
    • 13th Mar 18, 9:36 AM
    • #6
    • 13th Mar 18, 9:36 AM
    I'm in similar situation part way through a 5 y fix with Santander. I believe it meant I'd port my existing rate and balance and any extra I wanted would be on a different rate which would mean paying two loans at the same time which obviously meant a more expensive overall monthly payment. I'm considering paying the erc and getting a new product instead.
    • TrickyDicky101
    • By TrickyDicky101 13th Mar 18, 9:43 AM
    • 3,011 Posts
    • 1,944 Thanks
    TrickyDicky101
    • #7
    • 13th Mar 18, 9:43 AM
    • #7
    • 13th Mar 18, 9:43 AM
    I'm in similar situation part way through a 5 y fix with Santander. I believe it meant I'd port my existing rate and balance and any extra I wanted would be on a different rate which would mean paying two loans at the same time which obviously meant a more expensive overall monthly payment. I'm considering paying the erc and getting a new product instead.
    Originally posted by sitesafe
    Surely that depends on what your existing rate is, what any additional top up rate would be, and what alternative new product rates are available out in the market?
    • sitesafe
    • By sitesafe 13th Mar 18, 10:44 AM
    • 446 Posts
    • 853 Thanks
    sitesafe
    • #8
    • 13th Mar 18, 10:44 AM
    • #8
    • 13th Mar 18, 10:44 AM
    I'm in similar situation part way through a 5 y fix with Santander. I believe it meant I'd port my existing rate and balance and any extra I wanted would be on a different rate which would mean paying two loans at the same time which obviously meant a more expensive overall monthly payment. I'm considering paying the erc and getting a new product instead.
    Originally posted by sitesafe
    Surely that depends on what your existing rate is, what any additional top up rate would be, and what alternative new product rates are available out in the market?
    Originally posted by TrickyDicky101
    Well of course. I rang Santander and was told of rates available on that day, I'm due to see a broker to see what else is available and will then decide what is the best option.
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