Moving house - Porting the mortgage

IWantToBeFree_2

I am probably going to be called naive, stupid etc by posting this thread but I am slightly confused and thought here would be a good place to start before looking stupid with the building society tomorrow.

Bought a house 9 months ago, due to factors beyond our control, we are looking at selling. We had a 100% mortgage, so have undoubtedly lost money on the value of the house, but we are wanting to get something cheaper and within 85% LTV bracket with our next move.

At the minute my mortgage value is around £85k, the houses we are looking at are around £60k and we are hoping to get around £75k for this one. By reading through all the mortgage stuff we have and on the societies website, I am unsure whether we would have to pay off the whole mortgage if we moved house and then take a new one (ours is definately portable)...

My thinking was that we would reduce the mortgage to £51k, pay the building society the difference and then the additional money would be used as the deposit, but the more I think about it, the more that it seems very wrong and if we want to get out of this house we are going to have to take a huge financial hit...

feisty1

Current Mortgage 85k
Current Valuation 75k

You owe building society 10k

Buy for 60k
Mortgage for 51k (where is the 9k deposit coming from)

(now you owe b/s 19k)

???????????

IWantToBeFree_2

Thats what I am thinking....

I have got in a muddle as to what porting the mortgage actually meant, I just thought it could be secured against another property, and therefore if the property has a lower value, the proceeds from this house could be used to repay in part/part deposit.

From your reaction, and as I have come to realise looks like my thinking is wrong and we could be back to the drawing board...