can you port to a lower mortgage?

stoneycroft85

Hi, I am currently with Nram and have an outstanding balance of £144,000, I bought the house for £172,000 and lived here for 5 years, I am currently on "Interest only" and have been so for the last 4 years, each year I have to prove my income and my out-goings to ensure I can stay on "Interest only"
Today I had to give the above information and spoke to the guy about what other options were available, by the way my home is on the market for £150,000 due to the current housing market, I have had no interest at all! anyway he did mention "Porting my mortgage" I asked what this meant, and he said someone would ring me about this in 5 days+.
My Mortgage is £573 per month and my Balance increases each year, my finacial situation is unlikley to change. I have very little savings, around £3000 and wonder how it works????
My ideal situation would be that I sell my house for £140,000 and Buy another Property for £80,000 with the £4,000 still owed from paying off the mortgage added to the £80,000 making my mortgage £84,000 and with out providing a deposit to put on the new property, just the legal bills to pay this would then enable me to pay off my mortgage by repayment.
Does it work like this?

bigadaj

Noit doesn't, you will need a deposit for a new house purchase. Sounds as like your debt is increasing currently so I would try and get the house sold as quick as you can, even if cutting the price more means you are left with nothing, other option is to get more deeply into debt.

You would then probably need to rent and tray and save another deposit.

kingstreet

You can take out a new mortgage with NRAM but it must be less than the amount you currently owe and it must also be 95%, or less, than the value of the new property. The rate will remain the same.