porting question

monkeyalan_2

we have a property with a mortgage of 120k which was the old 100% graduate offer from HSBC which has a rate of 1.5%.

We know we can port the mortgage and obviously at 1.5% we don't want to give it up.

Now , HSBC no longer do a 100% mortgage , 90% is their maximum now.

So, if we want to buy a new property would it have to be worth at least 132K meaning our current mortgage would become a 90% mortgage (132k - 10% = 120k)

or if we bought one at 120K would we have to repay 12k (120k - 10%) leaving us with a 90% mortgage of 108k.

or even , would we just port the 100% rate and everything would stay as it is?

my head hurts

thanks

beecher

You'd have to get the LTV down so would have to pay a 10% deposit in order to move.

You'd need to find out if you'd have to pay an Early Repayment Charge if you overpaid 12k onto your mortgage - should be ok but best to check.