Port or Switch? - Moving home Winning_Ry

#1
Hi there



I regularly view this forum for advice which has been very helpful, now it seems I need some myself. Hope you can help.



Some facts:

- Home currently on market.

- Bought for 152k selling at 250k with an outstanding mortgage of £129k

- Looking to borrow more to move home, currently on a post office money mortgage 2 year fix at 1.99% expiring around this time next year.



- Financial advisor at time (2 months ago) advised sticking with the post office and porting as they are offering the highest borrowing amount at around 319k. Natwest was similar.

- LTV will be 75% looking at homes in 300k-415k region.

- Highest the post office will now lend via calculators is 295k, Natwest stays the same at 319k but rate is 2.59%

- Believe switching brings a 3% or 2% charge.



- My wage will be increasing within a year and even at current salary we can afford, if required, the highest lending amount predicted.

- We want the maximum possible borrowing amount so we have a good range to play with when offering on homes for our future.



Would you port or switch in this situation?



Can i get an in principle agreement with both these lenders at the same time to support home viewings and offers? So we are not restricted by the current lower borrowing amount predicted by the recently changed calculators?



Once you have the in principal offer will this remain or if lending criteria changes (such as post office) when applying in full can this be reduced?



Many thanks in advance for any advice. Had this all in plan with sticking with post office money until they threw in the last minute curve-ball!

#2
If you want the maximum borrowing then you would ditch the post office, although it's a massive penalty for a small increase are you sure its that important?



Don't get AIPs with 2 lenders, wait until you are about to offer then get one with the lender you will use.



An AIP will not time stamp the criteria they will use, the full application will do though

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