Mortgage porting math & overpayments

dbuk44

Hello - I've been merrily overpaying my mortgage this year.

Having just talked through "porting" with the bank, something we'll probably want to do around 7-8 months from now, I`m not so certain I should continue overpaying.
Fresh pair of eyes appreciated :beer:

Background

• Current mortgage £180,000 @ BoE + 1.49 (tracker)
• I hope to sell my current house for £220,000 (40k or 20% eq)
• We are looking to buy a house for £250,000

Porting Math (using 'todays' figures)

• I port my balance of 180,000 across at a rate of BoE + 1.49
• I have equity of £40,000
• I borrow an additional topup of £30,000 at 5.79%

The Sanity Check....

I think I`m better of keeping the cash in the bank in order to reduce the topup amount needed at high rate, than to continue over paying (which will only reduce the amount mortgaged at low rate).

.

getmore4less

If you want to port the Base+1.49% save it will be hard to find a better deal later. If you can it won't matter much because you can get close to the mortgage rate in savings