Mortgage Question

Transform_IT

Transform_IT

Transform_IT

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Joined
18 Oct 2012
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496
Hi all,

Just a quick one. I will speak to a qualified FA tomorrow, but we are in a predicament and wanted to know our options this evening. We recently listed our property and have had an offer that we deem acceptable. We have found a property we like, but it is £70k cheaper than we are selling. Our LTV ratio on our current property is 75%, and our mortgage rate is 2.07%.

  • We are wondering if it is likely we can retain the current 2.07% rate with our lender, borrow the same as we are doing currently, but use less deposit, thus increasing the LTV and keep our monthly mortgage rate the same? - the idea is to use the equity to invest in further property.

Or

  • Will the lender say we can keep the current rate but must keep the LTV ratio the same? - thus meaning the equity must be used as the deposit on the new property.

Thanks,

T_IT
 
Last edited:
Generally, when selling one property and buying another, you can move your current mortgage across.

The only roadblock here seems to me that you'd be increasing your LTV: what was the maximum LTV on the mortgage when you took it out? I know with my lender, HSBC, that the rate changes depending on LTV.

I dont really see that you need a FA for this, unless there are other reasons to use one. Just ask the bank if they're OK with it
 
cheesyboy said:
Generally, when selling one property and buying another, you can move your current mortgage across.

The only roadblock here seems to me that you'd be increasing your LTV: what was the maximum LTV on the mortgage when you took it out? I know with my lender, HSBC, that the rate changes depending on LTV.

I dont really see that you need a FA for this, unless there are other reasons to use one. Just ask the bank if they're OK with it
Click to expand...
We can port our current mortgage/product. But, the idea was to sell and free up some cash to allow us to build a small portfolio of properties. However, we want to be able to do this at the existing rate of 2.07%.
 
When I ported, I was asked a few times about whether it was "cost more" or "cost less". If it was cost less, I couldn't port.
 
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