Advice greatly appreciated

jackthelad2010

Ok. We are expecting a baby soon and because of this we need a larger home as we currently own a 1 bedroom flat (the baby was not planned you see). We had an appointment with our mortgage provider last week to see if we could port our mortgage to another property. We were informed that we could do that but we would still have to pay a 10% deposit which will be around £15,000. Is this correct? do we really need to pay yet ANOTHER deposit on the same mortgage? And a large deposit at that!
The mortgage advisor also spoke with a colleague on the phone in our presence who siad that if we port our mortgage we will have to pay the early payment charge of around £1800 )This expires next October, however, we will be unable to stay that long) the advisor who we met face to face did not thik that we would have to pay the charge if we only ported our mortgage. But really i need clarity on this. Does anyone know if i would be obliged to pay the early payment charge just to port my mortgage to another property? I wont be paying off the mortgage, so i dont see how that could be a possibility.

Many thanks

JSR

You won't have to pay ERC if the bank lets you port the mortgage. The bank will require you to meet their lending criteria first, though. How much deposit you have to put up depends on how much equity you have in your current place and how much the new place will cost. Sounds like the bank won't lend more than 90% LTV. So you will need to find 10% from either your own funds or from the sale of your flat or a combination of the two.