New mortgage or port the old one

m17936

I have a flat in Essex and a mortgage with Barclays at 0.17% above Bank of England interest rate. I have 60k left on it.

Due to work circumstances I have to move to Cambridge and I found a brand new house for 475k. The builder offered to part exchange my flat paying the market value of 240k.

Should I pay off the Barclays mortgage in full and do another one for the new property or should I port the Barclays mortgage and then remortgage the difference?
In case which company should I go for? I was interested in the fixed rate for 5 years from HSBC or First Direct.

My deposit would be 170k, I am looking at borrowing 320k and my gross yearly salary is 90k.

Many thanks for your advice.

Yorkie1

Porting is permission to carry across the rate once you've met the lenders' current lending criteria. So the first thing to establish is whether your mortgage product is portable. Then, whether you'll meet Barclays' lending criteria for the new place.

If you do port the rate, the balance of the new mortgage must be with the same lender i.e. Barclays.

I don't know enough to respond to your actual question about lenders / products, but you should be aware of difficulties reported on many other threads in relation to the conveyancers which HSBC insist are used to represent their interests in the conveyancing transaction - see threads in the House Buying forum.