Notes #

Rates for mortgages generally improve as you go up each 5% on your loan-to-value ratio.

Fixed Rate #

Fixed for a specific amount of time at a certain percentage. e.g. 5 years at 2.5%.

Tracker #

Rate is tracked against the Bank of England base rate so it can fluctuate depending on that rate.

Overpayments #

Overpaying, even a small amount each month, can knock years off the length of a mortgage. Money Saving Expert's mortage overpayment calculator is great for working this out.

Porting Mortgages #

Essentially, "Porting" a mortgage means "keep this mortgage but link it to a different house". If you port when buying a house that costs more, you have to get a second mortgage for the rest. Example (without any deposits/equity for simplicity):

  • House 1 has a mortgage of £100k
  • House 2 costs £150k
  • To port to house 2, you would keep the 100k mortgage then get another mortgage for £50k

Keep in mind if the either mortgage is on a fixed rate term, that it can be difficult to remortgage back into one mortgage again so it's worth considering putting the second one on a tracker until the fixed term is finished on the first.

I don't know how it works if house 2 is cheaper than house 1.