Porting Mortgage?

[LazyRoss18]

Currently looking at the possibility of porting my girlfriend's mortgage onto a new property we both will own. When porting, is the additional amount being borrowed charged at the original mortgage rate or is the additional amount charged on a new product rate so in fact you have a mortgage with 2 separate rates with 2 separate deal end dates? This is with Natwest if it makes any difference.

Thanks in advance!

[Sarnie]

"is the additional amount charged on a new product rate"


^This.

[LazyRoss18]

Sarnie said:

"is the additional amount charged on a new product rate"


^This.

Thanks for the quick response Sarnie, I am still not sure whether we are better off just paying the ERC and starting again, then we have just the one rate to worry about?

[Sarnie]

LazyRoss18 said:

Thanks for the quick response Sarnie, I am still not sure whether we are better off just paying the ERC and starting again, then we have just the one rate to worry about?

The key is the rate of the further advance and all the figures involved.

No point holding on to a £50k balance with an ERC at a rate of 2%, if you then need to borrow £300k at 4.99% for example.....if you could get the whole £350k at 2.5%........crude figures obviously and it obviously works the other way if you have a large current balance with a large ERC and only needing a small further advance, it wouldn't be worth paying the ERC in that example....

[LazyRoss18]

Sarnie said:

The key is the rate of the further advance and all the figures involved.

No point holding on to a £50k balance with an ERC at a rate of 2%, if you then need to borrow £300k at 4.99% for example.....if you could get the whole £350k at 2.5%........crude figures obviously and it obviously works the other way if you have a large current balance with a large ERC and only needing a small further advance, it wouldn't be worth paying the ERC in that example....

Thanks a lot, I hope you don't mind but I have PM'd you with some further detail