£1.6 million home purchase supported by mortgage porting and early rate protection

Client profiles

Our clients, a doctor and a lawyer, were next-time buyers purchasing a new home for £1.6 million.

The challenge

They already had an existing Nationwide mortgage on a very competitive fixed rate, with around six months remaining, and wanted to port this to their new property while taking additional borrowing.

At the same time, purchase negotiations were dragging on and mortgage rates were rising quickly. Waiting too long could have meant losing access to a competitive rate on the extra borrowing they needed, but moving too fast could have weakened their negotiating position on the purchase price.

How Trinity Financial helped

We put a rate protection strategy in place by securing a Decision in Principle early. This allowed us to take advantage of Nationwide’s ability to reserve a product for up to 90 days after DIP, locking in the rate before negotiations had concluded.

This gave the clients certainty over their borrowing costs while allowing them to continue negotiating on the property without pressure from the market.

The result

The final mortgage was structured as:

• Ported mortgage: 1.29%, covering around 50% of the borrowing
• Additional borrowing priced around: 3.80%
• Amount of loan granted: £950,000.00, plus a £1,499.00 fee added to the loan

By the time the purchase was ready to proceed, equivalent rates for the additional borrowing had increased to around 4.25%.

Outcome for the clients

By acting early, the clients preserved the benefit of their existing low rate and avoided a meaningful increase in borrowing costs on the top-up loan.

Just as importantly, they were able to negotiate their purchase with confidence, without being forced into decisions by rising mortgage rates.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage