Mortgage Porting - HSBC

lemon26

Hi all,

I'm hopefully going to be moving from North Scotland to Lincolnshire in the future and woudl like to port my mortgage as it's a rate I'd not find elsewhere at present. Have spoken to HSBC and they've said that, subject to me sucessfully passing the application again, they'd have no problem in principle doing this. Can you explain how it would work as they've thoroughly confused me!

I sell my house in Scotland for £95000 and buy somewhere in Lincolnshire for £88000 - outstanding mortgage at time of sale £45000 to be ported to Lincolnshire house. How much do I get in my bank account - is it sale price minus difference between purchase price and mortgage (so £95000-£43000 = £52000 in my bank account)? That seems too good to be true so it probably is....:rotfl:

Please help as I'm so confused! Thanks, L

CloudCuckooLand

Sell for £95k. On paper, that "clears" the mortgage of £45k. Giving you (ever so briefly) £50k in a holding account.

Buy for £88k. The "new" (although terms are ported, hopefully) Mortgage provides £45k. You still owe £43k, which comes out of the holding account, so you end up with £7k left in it. Which is and always was the difference...!

Subject to legal and other fees, of course.

I think that's right.