I just rang my mortgage provider to clear up about if we move house and got a garbled auto message then a shrill tone. Whatever.

Obviously the mortgage moves with you, same deal/rate etc. I know there's no early redemption fees, but do you have to pay an arrangement fee to move it - or not because it isn't being "arranged" as such?

And am I right presuming there will need to be a valuation on the new house as normal - so there's still the valuation fee to factor in?

We were lucky to have a big deposit if needed but we stuck with the 90% LTV on our house as it was a bit rundown so a fairly cheap mortgage needed even at 90% and we used the rest for the improvements.
When we buy - is the mortgage amount strictly the same or do they do the valuation and come up with LTV's?

We planned to just stick with the low mortgage and put all the equity in to make the offer so there'll be a bigger deposit this time, hence better bigger house but no big improvements for a while.

Or is there an option to revise your mortgage amount according to the new property without losing the deal or incurring lots of fees?

Don't get me wrong, having a tidy bit of equity on a house we plan to stay in for a fairly long time is nice, but I can't help thinking all the improvements done at once would be nicer!!

go on break it to me, I can't cash in equity for a shiny conservatory unless I pay a mountain of fees and lose my excellent fixed rate

Dunno HC. Surely there is somewhere in your contract that outlines the extent of your portability? They will probably make you jump through hoops if you want to borrow more and yes you will definitely need to pay for a valuation. Other than that no idea.

yes but that requires finding it (though I'm very organised and still have it all filed in order from when we bought )

and then reading it and trying to understand it. Whereas this way, you people think for me and I get to get on with the important stuff like listening to Peter Cetera on You Tube, looking at Facebook photo albums whilst watching scooby doo on dvd. With a brew and some beetroot.

alright, I'll go find it

Your fixed rate mortgage should be fully portable when you move. You will need to apply all over again in relation to the new property and a valuation fee will be payable. Your new borrowing capacity will be calculated with reference to the valuation of the property you are buying and the lender’s loan criteria. If you are eligible to borrow an amount that his higher than your current fixed rate loan you can borrow the higher sum if you wish, but any excess over the bit you have carried across from your previous property would have to be set up on a different basis. For example I moved just over a year ago two years into a five year fixed rate mortgage. I needed to borrow a little more to finance the new purchase so I now have the original fixed rate loan with two further years to run on it plus an extra amount which is on the lender’s standard variable rate. Apart from the valuation fee the only additional cost incurred was some sort of admin fee for porting the loan across – this being in addition to the lender’s legal fees of course

quote:

Originally posted by susiecam:
If you are eligible to borrow an amount that his higher than your current fixed rate loan you can borrow the higher sum if you wish, but any excess over the bit you have carried across from your previous property would have to be set up on a different basis. For example I moved just over a year ago two years into a five year fixed rate mortgage. I needed to borrow a little more to finance the new purchase so I now have the original fixed rate loan with two further years to run on it plus an extra amount which is on the lender’s standard variable rate.

Our fixed rate didnt work like this ...... we could port our fixed rate mortgage deal over to a new property with a port fee of £250 - and keep the whole loan on the original fixed rate, as long as we didnt go over the LTV rate that our mortgage was fixed to - the deal we are on is a maximum 75% LTV mortgage - so as long as we didnt want to borrow more than 75% for the new property it was OK! Of course, we have to pay the valuation/survey fees too!

I think from what I've gathered from the "schedule" that it works likes susie's. yours would've been great dg1!

So I need to pay valuation and a port fee, possibly £200+ or is this not in every case?, and what are the lender legal fees? Is that seperate from all the conveyancing?

The lender's legal fees will be included within the amount you pay your solicitor as it is normal for the lender to instruct your solicitor to carry out their legal requirements. If you were doing your own conveyancing or employing a conveyancer who was not a practicing solicitor then the lender would instruct their own bod and make you liable for their costs. When you remortgage, however, most lenders will cover the legal fees themselves as part of the incentive to come to them. Or at least they did do when they actually wanted to attract mortgage business

Do banks actually not want the business at the moment then?!

I'm having a live web chat with a mortgage advisor at XXXXX at the mo, so she can sort it out!