Porting my mortgage to a new place

NewHouse_3

I have only ever bought 1 place before so I am pretty new to buying and selling, mortgages, etc so hoping some one could advise on my situation.

I will be signing up to a new fixed rate deal with my current mortgage provider, probably in January in case there are further rate cuts, to allow me to move this product and mortgage to a new house, sale completing hopefully early March, all being well. I cannot port the SVR according to the company and their current fixes are 1/2 a % to over 1% lower than their current SVR anyway, depending on the fixed rate period.

Now, can some one advise what generally happens when I come to port the mortgage? Am I porting the same mortgage or am I just porting the product? Will I need to pay off the mortgage on the flat and take out a new one on the house? By the time I come to move, the mortgage will have approximately £41,000 on it. I am buying the house for £40,000 but mortgage will only be for £34,000 because of the need for a 15% deposit. I am selling the flat for £46,500 and combining the "profit" with a car accident payout to make up the deposit, legal fees, etc. Apologies if these are very silly questions but will I need to pay the mortgage company the difference of £7000 between the 2 mortgages before I can port it? Presumably the deposit will need to be paid to the solicitor to combine with the lesser mortgage amount to forward to the seller? If I am moving the same mortgage over from the flat to the house, and am paid the money from the sale of my flat into my bank account, does this mean that I will have that money available to spend, less the cost of paying back the part of the mortgage I don't need on the house, deposit, legal fees, etc?

Will be asking my IFA these questions when I arrange the new mortgage but this won't be until mid-January at the earliest. And am a little embarassed at my naivety here so would welcome any advice.

Many thanks in advance,

Jaz

silvercar

You are porting the product not the mortgage. Your solicitor will sort out all the money transfers. Before exchange he will ask for your deposit and tell you how much will be needed before completion. No money should touch your personal bank account, it will all be done through the solicitor's client account.

dimbo61

Why dont you just go onto your existing lenders SVR for the 3 months
Jan,feb and march and then take out a new fixed rate deal on your new house when the sale goes through.
This means you can shop round or get your broker / IFA to find the best deal on the market to suit your needs and not tied to your existing lender !

NewHouse_3

I am already on my lender's SVR just now due to the lack of deals when I went to remortgage. I have already been to my IFA and the deals offered by my current provider are the best he can get me. Otherwise, I would probably be looking at a higher deposit and a higher intrest rate.

Thanks for the advice Silvercar, appreciated. Your posts are always very straightforward and helpful. :T