New property ... new mortgage?

OnlyMe_08

Hi

Just exploring options at the moment and was thinking of 'upgrading' to another property, and would like to understand how the process works.

If say we have £100K balance to 'close' our existing mortgage and could say get £200K from the sale of our existing property, this would mean we would have £100K to put towards the new property - right?

If so, I guess we could look at a £400K home, put the £100K towards it and get a 75% LTV mortgage, thus the loan would be £300K?

If that is the case, what would the monthly payments be on a repayment mortgage? Also, what rates are the mortgage providers offering these days? And someone mentioned 'porting over the mortgage' - what does this imply?

Thanks for any advice.

Wutang_2

OnlyMe_08 wrote: »

Hi

Just exploring options at the moment and was thinking of 'upgrading' to another property, and would like to understand how the process works.

If say we have £100K balance to 'close' our existing mortgage and could say get £200K from the sale of our existing property, this would mean we would have £100K to put towards the new property - right?

If so, I guess we could look at a £400K home, put the £100K towards it and get a 75% LTV mortgage, thus the loan would be £300K?

If that is the case, what would the monthly payments be on a repayment mortgage? Also, what rates are the mortgage providers offering these days? And someone mentioned 'porting over the mortgage' - what does this imply?

Thanks for any advice.

not sure about most but yes, 200-100=100

dimbo61

Looking at the cheapest ? 5 year fix from coop at 3.99% ( fee £999) £300K over 25 years works out at £1581.85 a month for 5 years with a 75% LTV
You would need to be earning £65K to £75K a year to afford that level of borrowing.
After 5 years you would have paid off approx £39K

dimbo61

With regard to porting your existing mortgage
You might be able to TAKE your existing deal onto the new property and borrow the other £200K at the best deal you can find with your existing lender!