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Our 5 year fix ends next week, but we've just had an offer accepted on another, more expensive, property.

As I understand it, we've got two broad options

  • Pay SVR until we complete on new property (a few months?) and apply for a brand new mortgage on the new property
  • Lock in a fix on a good rate for our current mortgage balance (using existing 60% LTV) which we can port, then apply for a 'top up' mortgage for the difference on the new property - which would be at a higher LTV.

Given rates are likely to rise soon-ish, and our LTV won't be as good at the new property, it's very tempting to lock in a good deal on our current balance now, and port it.

The downsides I'm aware of with this approach are:

  • Risk of not being accepted for 'top up' mortgage at the time. Given the total loan we will be seeking is less than in our agreement in principle, this seems quite unlikely - but is an outside possibility.

  • Two separate mortgage products with different dates. Not ideal, and a bit more admin, but potentially save thousands. Could potentially realign them in a few years time by paying SVR for a few months on one part when the amount borrowed is significantly less.

Are there any other issues I'm overlooking? Does anyone have experience of doing this?

For info: Current balance around £130k on £335k property

New mortgage (total) £250k on £385k property (including using some money for refurbishing)

Lender = First Direct

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  • What difference to monthly mortgage payments would being on the SVR make? Oct 28 '21 at 9:14
  • @marktristan - about £150/ month more with SVR for the interim period before moving house (weeks or months) : SVR would be around £850, but fixed rate at 60% LTV would be £700. If rates don't change, the new bigger mortgage would be about £15 a month cheaper for 5 years if we fix part of it at 60% now - and even more if rates go up in the meantime. Not convinced this is enough to warrant the risk/ hassle outlined above though...
    – JShark
    Oct 29 '21 at 12:40

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