porting mortgage across to new property

digger65

Hi
I am somewhat confused after a chat with my current lender
In the simplest terms we have had an offer on our flat, accepted and now wish to start looking for a new property.
As our current mortgage is fixed till July next year and portable our lender suggested we port it over to the new property for the remainder of its term.
We have equity from the sale at 80k, our mortgage was for 80K, the property we wish to buy is at 150K.
From what i understood our lender suggested we port the 80K mortgage over to the new property and avoid the early redemption charge also keeping our rate and repayment amount.
What i cannot grasp is surely the property we wish to buy is 150K?
how can we buy a 150K property with an 80K mortgage?
perhaps its the way my brain is wired but I don't really get it?
thanks anywho
~J

Nikki

We did this when we sold our house 2 years ago. Our mortgage was 43k or there abouts and we sold for 155k. Because we did not repay our old mortgage(also on a deal) all the equity goes on the new property and the bank then lend you the difference on top of the ported mortgage. So now have a ported mortgage of 36k and a mortgage of 92k as the house we bought was 212k. HTH

itzmee

Basically all you are doing is transferring your mortgage from one property to another and then topping it up with either more borrowing (so you would have 2 parts to your mortgage) or providing a large deposit.

digger65

ok thanks
now if they had put it that way..
J