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Thread: quick mortgage question

  1. #1
    Master
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    quick mortgage question

    The initial low rate of my mortgage has come to an end and it's time to remortgage. However, we are currently in the market to move home.

    Would remortgaging and then potentially needing a new larger mortgage / having to port this remortgage a few months later cause issues?

    The uplift in rates is 3.5% and I don't really want to pay that unnecessarily.

  2. #2
    Master
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    Quote Originally Posted by funkstar View Post
    The initial low rate of my mortgage has come to an end and it's time to remortgage. However, we are currently in the market to move home.

    Would remortgaging and then potentially needing a new larger mortgage / having to port this remortgage a few months later cause issues?

    The uplift in rates is 3.5% and I don't really want to pay that unnecessarily.
    Check your T&C's most mortgage companies will allow you to port your mortgage over to a new property, subject to the normal valuation & affordability criteria being met.

    The same goes for a lot of contracts, BT for example are porting over my broadband contract to my new address.

  3. #3
    Master
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    Quote Originally Posted by funkstar View Post
    The initial low rate of my mortgage has come to an end and it's time to remortgage. However, we are currently in the market to move home.

    Would remortgaging and then potentially needing a new larger mortgage / having to port this remortgage a few months later cause issues?

    The uplift in rates is 3.5% and I don't really want to pay that unnecessarily.
    I would be very careful assuming your mortgage company would allow you to port. It's dependent on multiple factors, but I would definitely not take it as given. Do you know how long it is until you're likely to find a new place and move? For the flexibility of being on a standard variable rate for a short period it may be worth sucking up the higher rates for a few months.

    Obviously all of this depends on your situation, how much extra your new place is going to cost etc etc etc. Probably only you and a decent mortgage advisor can really answer this question

  4. #4
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    Quote Originally Posted by Peck View Post
    Do you know how long it is until you're likely to find a new place and move?
    How long's a piece of string? Had three offers refused already! Soon ideally.

    Quote Originally Posted by Peck View Post
    For the flexibility of being on a standard variable rate for a short period it may be worth sucking up the higher rates for a few months.
    Agreed. Real shame though given that the extra interest could quickly add up to the value of a watch.

  5. #5
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    Quote Originally Posted by paulpsz008 View Post
    Check your T&C's most mortgage companies will allow you to port your mortgage over to a new property, subject to the normal valuation & affordability criteria being met.
    Porting per se isn't the issue. The issue would be porting just a few months after having taken out the new mortgage.

    Sadly I feel that I may just have to pay the higher interest and wait for the new home. :(

  6. #6
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    Remortgage and then porting is not a particular issue, the issue will be with affordability and any change in LTV.

    You mentioned needing a higher mortgage, in which case you are not just porting but changing the mortgage (amount borrowed). The Bank will have to reassess affordability using the new, more onerous guidelines, but assuming you meet the criteria there is no barrier. However, don't assume porting is better/easier than getting a new mortgage with another bank, the requirements regarding affordability are the same, banks can no longer rely on any review they did when you first took out the mortgage, any significant change results is a new affordability calculation.

  7. #7
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    We managed to port ours in 2012 to our new home and at the same time get an increase in the loan on the same original terms (from 2006). I couldn't quite believe it at the time as the original terms were lifetime tracker at base rate plus 0.5%. A friend who is a mortgage broker sorted it out for us. It was his senior level contacts at the lender that got us this deal. I buy him champagne on a regular basis and it taught me that brokers really can add value!

  8. #8
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    Quote Originally Posted by funkstar View Post
    How long's a piece of string? Had three offers refused already! Soon ideally.
    Oof. Sorry to hear that. Hopefully number 4 will be the one

  9. #9
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    Twice I've tried to move a mortgage over to a new property and each time they've handled it as a full, new mortgage. Including redoing the credit check thing and arrangement fees etc... This was with Natwest.

  10. #10
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    Many lenders have new deals for clients that have come off a deal. I've just arranged one for a client whose come off a 2 year fixed at 1.89% and due to go on a standard variable rate of 3.79%. They had a 2 year fee free and penalty free tracker at 1.99% which I put him on. They may be in a position to pay off their mortgage in a few months and didn't want a tie in so we went for that.

    If that doesn't happen they can carry on with that deal or chose something else.

    Interest rates won't be rising anytime soon, they are actually more likely to drop believe it or not.

  11. #11
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    I didnt want to start a new thread so thought i would resurrect this one.

    I have approx 3 years left on my fixed rate mortgage i signed upto, everything fine and dandy. If i were to move house and my lender doesn't want to lend me as much as i needed (they're saying approx 2.5x salary i need around 3x salary), and thus went with another mortgage provider - would i have to pay the Early Repayment Charge as I dont want to end the mortgage its just that the lender is being a bit too stringent making it impossible to continue with them.

    I can afford the repayments comfortably as other lenders have agreed to 3x salary (some even more).

  12. #12
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    Quote Originally Posted by Estoril-5 View Post
    I didnt want to start a new thread so thought i would resurrect this one.

    I have approx 3 years left on my fixed rate mortgage i signed upto, everything fine and dandy. If i were to move house and my lender doesn't want to lend me as much as i needed (they're saying approx 2.5x salary i need around 3x salary), and thus went with another mortgage provider - would i have to pay the Early Repayment Charge as I dont want to end the mortgage its just that the lender is being a bit too stringent making it impossible to continue with them.

    I can afford the repayments comfortably as other lenders have agreed to 3x salary (some even more).
    Yes you would have to pay them, no way around that. Lenders criteria change all the time and your rate is based on a mutually agreement deal you signed when you took it out. Likewise they can't get out of the deal either.

  13. #13
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    Yes, unfortunately you would have to pay the early repayment charge.

    In the past, I have suffered this charge. It got me in to the house I wanted at the right time and price. I added the 'fee' to my new mortgage.

  14. #14
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    Could you port your existing mortgage and then get an additional mortgage for the top-up? I'm in the process of doing this at the movement and means I avoid the early repayment charge. Not all fixed rate mortgages are portable so you'd need to check.

  15. #15
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    Quote Originally Posted by Gerald Genta View Post
    Could you port your existing mortgage and then get an additional mortgage for the top-up? I'm in the process of doing this at the movement and means I avoid the early repayment charge. Not all fixed rate mortgages are portable so you'd need to check.
    i couldnt port it because the additional money needed wouldn't be covered by the existing lender, so i would need a much bigger deposit.

  16. #16
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    Just a quick update, after contacting the mortgage lender, if porting your mortgage and you need to borrow more at the same time, you keep your existing mortgage, and then take a new mortgage deal for the additional funds required. Effectively you have two mortgages with the same provider.

    Not sure if this was common knowledge but it was news to me.

    Sent from my moto g(8) power lite using Tapatalk

  17. #17
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    Quote Originally Posted by Estoril-5 View Post
    Just a quick update, after contacting the mortgage lender, if porting your mortgage and you need to borrow more at the same time, you keep your existing mortgage, and then take a new mortgage deal for the additional funds required. Effectively you have two mortgages with the same provider.

    Not sure if this was common knowledge but it was news to me.

    Sent from my moto g(8) power lite using Tapatalk
    I did this after moving a few years ago and needing to borrow more for the new house. Once the fixed term was finished on the extra bit I remortgaged the whole amount to have back to one mortgage.

    Sent from my SM-G973F using Tapatalk

  18. #18
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    Quote Originally Posted by Estoril-5 View Post
    Just a quick update, after contacting the mortgage lender, if porting your mortgage and you need to borrow more at the same time, you keep your existing mortgage, and then take a new mortgage deal for the additional funds required. Effectively you have two mortgages with the same provider.

    Not sure if this was common knowledge but it was news to me.

    Sent from my moto g(8) power lite using Tapatalk
    The challenge is then bringing them together since the discounted terms / locking period are often offset. When we last moved, I took the but of a small financial penalty to exit my current deal in order to borrow a larger amount of money. This was the most cost effective route in my case.

  19. #19
    Quote Originally Posted by jwillans View Post
    The challenge is then bringing them together since the discounted terms / locking period are often offset. When we last moved, I took the but of a small financial penalty to exit my current deal in order to borrow a larger amount of money. This was the most cost effective route in my case.
    It can be a bit of a hedge having two parts with fixed rates expiring at different times.

  20. #20
    Quote Originally Posted by jwillans View Post
    The challenge is then bringing them together since the discounted terms / locking period are often offset. When we last moved, I took the but of a small financial penalty to exit my current deal in order to borrow a larger amount of money. This was the most cost effective route in my case.
    Why important to bring together?

  21. #21
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    Quote Originally Posted by Kingstepper View Post
    Why important to bring together?
    It gives more options when remortgaging if its just one mortgage. While I think it's possible to have the two parts with different banks it's harder as its an additional charge on the property. All/most banks have extra fees for this set up and some won't lend at all.


    Sent from my SM-G973F using Tapatalk

  22. #22
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    When I moved to my current property I ported my existing property and then took out second top-up mortgage as described below. To keep the existing mortgage I had to make sure the LTV remained the same. 12 months later the fixed rate of the ported mortgage expired. The new fixed rate was not attractive. I shopped around, found a much better rate, paid the early repayment fee on the second mortgage and moved my combined mortgage to the new lender. Over the long term it was much more cost effective. I will also make thinks simpler if I decide to sell in the future.

  23. #23
    I just did the same as gerudd and others, moved house, taking the existing mortgage (Santander) on the current fixed rate and adding the additional amount at the currently offered fixed rate again with Santander. This means I have two deals in one mortgage 'wrapper'. This means we have two different end dates for the fixes about 5 months apart. Adds a little complication in that we have to keep track of both deals ending but seemed worth it to me and as Justin says it hedges you a little in terms of rates rising and falling.

    The alternative was to go on SVR for five months on mortage 1 while we waited for completion and merge the two mortgages onto the same deal.

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