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  • Writer's pictureMatthew Pigrome

Maximising Mortgage Benefits: Porting and Topping Up Your Mortgage

Are you considering a move, an increase in your borrowing, or both?

The process can be complex, but there's a valuable mortgage strategy to consider: porting your existing mortgage product and topping it up with a new one from your current lender's offerings. Let's dive into a real-life example to illustrate how this approach can benefit you.

Unlocking Financial Flexibility: Porting and Topping Up Your Mortgage

Case Study: Meet Our Clients

Our clients were selling their property, making a lateral move in terms of property value. However, they needed to increase their borrowing to £100,000 to fund renovations on their new home and repay an unsecured loan. Their existing mortgage, recommended by us in 2021, stood at £51,000 with a fixed rate of 1.39% and had 39 months left. The lender's current mortgage options were priced at 5.44% and higher.

The Lender's Offer:

Initially, our clients approached their lender directly for a solution. The lender offered them a new 5-year fixed rate product for the entire £100,000 borrowing at a rate of 5.79%.

Our Recommendation:

We took a different approach, one that could significantly benefit our clients. We recommended that they retain their existing 1.39% product and "port" it to their new property. Additionally, we suggested taking out a new fixed-rate product for the increased borrowing amount of £49,000 at a rate of 5.44% for 36 months.

The Benefits:

  1. Lower Interest Rate: By retaining the 1.39% rate on the existing mortgage product, our clients enjoyed a significantly lower interest rate on a portion of their borrowing. This translated into substantial interest savings over the remaining term.

  2. Shorter Fixed Term: While the new product for the additional borrowing came at 5.44%, it was only fixed for 36 months. This shorter fixed term provided our clients with flexibility, as they could reassess their mortgage options sooner.

  3. Cost-Efficient: Our recommendation allowed our clients to secure the extra funds they needed at a competitive rate while optimising the overall cost of borrowing.

  4. Monthly Payment Control: With a portion of the mortgage still at the low 1.39% rate, our clients had more predictable monthly payments, making budgeting easier.

  5. Financial Well-Being: By minimising interest costs, our clients improved their overall financial well-being, ensuring that their mortgage served their long-term goals.

Conclusion: Your Mortgage Strategy Matters

This real-life example showcases the importance of strategic mortgage planning. Porting and topping up your mortgage can provide substantial financial benefits, including lower interest rates, cost-efficiency, and increased financial flexibility.

When making important mortgage decisions, don't hesitate to seek advice from experts like Mortgage321. We're here to ensure your mortgage serves your best interests and long-term financial goals.

Your path to financial well-being starts with informed mortgage choices. Let us help you make the most of your homeownership journey.

Ready to make the most of your mortgage and achieve your financial goals? Contact Mortgage321 today on 01255 440142 or email, and let's tailor a strategy that puts you on the path to financial well-being.

Your Home, Your Mortgage, Your Choice - Mortgage321


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