Porting a mortgage

megan17_2

Hi there,

wondered if anyone could help, sorry if these questions sound naive! when bought our shared ownership house a few years ago we bought our 60%share for £66000 putting down a 5% deposit of £3300. We've got 2 years left in our 5 yr fixed rate mortgage. I phoned nationwide to find out how much equity we had and they said if we sold the house for we bought it we'd have roughly £9k. We dont intend on getting a much bigger house and will buy a smaller share so the mortgage wont go up much and may even be smaller. I asked the advisor what sort of deposit we would need, ie. if they'd accept 5% again and he said as we'd be porting the mortgage we wouldnt need to put down a deposit again. I'm aware if the mortgage was smaller there may be an early repayment charge. I asked if he was sure that we wouldnt need a deposit and he said no, he wasnt sure!! so i've come away none the wiser. as you can tell this is my 1st time selling a house!

thanks in advance

Fire_Fox

Whether you need a deposit depends if there is any equity in your property, you need a valuation! Also don't forget to factor in estate agents fees if any (not sure if your shared ownership can go on the open market) and also legal fees.

getmore4less

Get a valuation and find out if there are any restrictions on the sale and costs for the part ownership.

Add up your other buying and selling costs to see how much ou will have left., thats the deposit for the new place.

Then you will need to find a buyer.


Why take an ERC just port the mortgage you have and get a slightly bigger share.

If you don't have any savings costs may eat too much of the equity to allow you to move.