Porting and borrowing more

MarkyMarkD

You should definitely look hard at whether it's worth porting the high rate. A 3%ish ERC is not that high given a relatively high rate; you'd need to pay around 1.5% less (5.64%) or lower, on a new mortgage, to make it worthwhile to abandon the Halifax - not a particularly low rate given what is available right now.

If you really have £5k of equity + £16k of cash deposit, that's more than 10% of the sort of price you are looking to pay so there's scope to afford to pay off the ERC.

kingstreet

stevefen23 wrote: »

So if I borrowed an extra £40k would I only have to put a minimum of 10% of the £40k?

No. It's a whole new mortgage on a new property. If you need 90%, it's 90% of the purchase price.

stevefen23

Thanks for all your replies,I think I will just ditch the 7.14 rate and pay the erc and try and get on the lower rate,I'm paying a fortune as it is on the mortgage on this flat,dread to think what it would be on a £150k house.

alinwales

I agree with Marky, do the sums (which it sounds like you already have). We have 2 years of a 6.4% fix (part of the whole mortgage). To leave this is £1800. By moving mortgage to 4%, I'm saving nearly 100 per month, which over 2 years is £2400, so better off by £600 or thereabouts, plus by fixing now for 5 years, I get security seeing as SVRs are edging up and no doubt fixed rates will start creeping up too. Try coop/britannis, they seemed pretty good to me, I'm dumping halifax as their rates are still way too high!