totally clueless about mortgages!!

pbfhpunk

edited re thesaint's suggestion

I currently have a house worth around £120k-£125k with a £50k mortgage, looking at my lender's site it says it's a portable mortgage. Does this mean that if I sold my house and got £120k (after fees) for it I'd use that as a deposit and transfer the mortgage to the new property so I could look at houses around £170k

As my next house will be a joint one with my fiance we'd be able to get a mortgage for £90k so if the above is true in theory we'd be able to extend the mortgage and take that with us and be able to look for houses around £210k?


At the moment we don't have an idea of what sort of budget we have for the sale, and can't get to that bank to talk to a mortgage advisor until several weeks in the new year.

Thanks

Helen

thesaint

Helen,
This post is exteremly hard to understand. Simplify it and you may get some response.

pbfhpunk

Hope it makes more sense now!!

UK007BullDog

Well, first of all if you get £120K for your house. Minus the £50K you owe the lender (your mortgage) you have £70K cash (equity).

So now comes the question how much do you earn a year and your partner? Basic Wage and any bonusses or overtimes seperate please.

Any outstanding loans? Hire purchases? Credit Cards?
Perfect credit record both of you?

pbfhpunk

Thanks uk007bulldog, but it's not the amount of a morgage I need the help with, it's what is meant buy a 'portable mortgage' You're saying I pay the existing mortgage back and then reapply for a new mortgage?

I don't see where the portable aspect is!

Suewre

The £50,000 is portable. If you sell the current house and get £120,000 after fees, that is £70,000 cash and £50,000 mortgage. If you then can get a £90,000 mortgage, that is the original £50,000 plus an additional £40,000 to make a total of £90,000 mortgage. Add that to the £70,000 cash, and you are looking at a potential house at £160, 000.

herbiesjp

You can only "port" the existing amount of mortgage on the same existing terms and conditions.

Please note that when you "port" a mortgage to a new property is is subject to exactly the same underwriting procedures as a new mortgage i.e. proof of income ID etc.

Any extra money will also be subject to the same underwriting. Any new extra money needed will not be on the same exisiting deal, but will have to be on one of the lender's current mortgage products

There are no gurantees that the current lender will agree the porting, or agree the extra money needed, as this will depend on your circumstances

HTH

UK007BullDog

The £50K might be portable, but to be able to tell you nearly exactly how much you could borrow towards the new property, we would need to know the answers to the above questions I asked. Then we can tell you what your borrowing power will be.

Alternatively if you do not want to post your income here:

Add your basic wages and multiply by 3 and/or 4. That would be the amount you can borrow depending on the size of the combined income.

If you have guaranteed bonuses or overtime divide them by half and add to the income then multiply. But if you give us the figures we well do it for you. Any outstanding loans of any kind will have to be taken off before multiplication.