Porting Mortgage v Paying off and starting again.

moneysavingrock

Hi all.

I have a house I rent out that I am looking to sell, with a view to buying another. I might be being daft but is there any difference between porting the mortage and paying it off and starting again.

Mainly I'm thinking about how much interest I've paid off. Basically I've only had the mortage 4 years so in this time my repayments have mainly been paying interest and not capital. If I port it then I'll be in the same position re capitla vs interest. But if I start again I'll be back to a point of just paying mostly interest. Will this be costing me money or is there only x amount of interest I can pay on a loan of a certain amount.

Any help greatly appreciated.

getmore4less

moneysavingrock wrote: »

Hi all.

I have a house I rent out that I am looking to sell, with a view to buying another. I might be being daft but is there any difference between porting the mortage and paying it off and starting again.

Mainly I'm thinking about how much interest I've paid off. Basically I've only had the mortage 4 years so in this time my repayments have mainly been paying interest and not capital. If I port it then I'll be in the same position re capitla vs interest. But if I start again I'll be back to a point of just paying mostly interest. Will this be costing me money or is there only x amount of interest I can pay on a loan of a certain amount.

Any help greatly appreciated.

It does not work like that.

Interest is not paid up front it is paid on the amount owed usualy on a daily basis.


The main reasons for porting is if there are penalties or it is a better rate than the current deals.