The porting of mortages- a little guidance please

[austinsmirk]

Hello: so 5 years ago I bought a new house, keeping my old property. I had an unusually low interest rate on the mortgage, somehow fixed for life (at the old house), plus owed only about 32k on my old property- with about 10/12 years left to run.

I discovered I could "port" this 32k to my new home, keeping its rate for life. Of course I borrowed more to buy the new home naturally

Now at the time I was told, yes you can "port" the 32k, yes you can keep the rate for life: but the timescales re-set. Thus what would have been 32k left to pay off over say a 12 year term, re-set to 25 years again.

I can recall arguing the toss, but basically I accepted it.

was the bank right/wrong ? was I right/wrong to accept ? Is this the case- the borrowing term "resets" ?

I'm still grateful to have the low rate, fixed for life: no matter what the market does- but it does feel like I'm paying towards my debt, almost twice over.

many thanks in anticipation.

[dandam]

We had exactly the same, we moved 3.5 years ago and ported the old mortgage (which had about 17 years left to run) across keeping the fixed rate but they reset the term to 25 years, this being the same term as the additional amount that we borrowed. The monthly repayment value dropped by about £150 pcm which I use to overpay the additional borrowing as I couldn't get such a good deal on that.

I was assured by my broker that this was normal.