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Porting mortgagae help
bubblegum6000
Posts: 73 Forumite
Hello
Just wondering if someone could help me out with something as I appear to be having a blonde moment!
My partner and I are looking at selling our current property and downsizing to help pay off our massive debts and allow us a few years to build up the equity again.
Current property is valued at £200k outstanding mortgage is £128k - we have in excess of £40k debts to pay off!
We are looking at buying a property for around £125-£135k and ideally would like to take our current mortgage with us as none of the rates are as good!
How would this work though as the property is less than our mortgage? Do we have to put £12.5k down for the deposit and then pay the mortgage company a further £15.5k as that is the difference between current mortgage and the amount we would like to port? I just can't get my head around it so sorry if I sound stupid!
If the above is correct then we would be better paying a higher interest rate haha!
Many thanks!
Just wondering if someone could help me out with something as I appear to be having a blonde moment!
My partner and I are looking at selling our current property and downsizing to help pay off our massive debts and allow us a few years to build up the equity again.
Current property is valued at £200k outstanding mortgage is £128k - we have in excess of £40k debts to pay off!
We are looking at buying a property for around £125-£135k and ideally would like to take our current mortgage with us as none of the rates are as good!
How would this work though as the property is less than our mortgage? Do we have to put £12.5k down for the deposit and then pay the mortgage company a further £15.5k as that is the difference between current mortgage and the amount we would like to port? I just can't get my head around it so sorry if I sound stupid!
If the above is correct then we would be better paying a higher interest rate haha!
Many thanks!
0
Comments
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Ignoring fees etc. Where's the other £32k of equity in your existing property going? As this should enable you to reduce your new mortgage considerably.
On the basis that the lender is willing to play ball. Then your ported mortgage will be for a lower amount.
Give them a call and sound them out.0 -
Sorry should have said, the remainder from the 32k is being invested elsewhere in the short term but will be put back in to the house within 2 years.
Does that mean that you dont have to pay them twice? Effectively just taking a new mortgage at old rate and putting down new deposit amount?
I am going to call them tomorrow and hopefully see if they are willing to! We have ported it once so hoping they wont have too many problems - its just such a good rate! (1.6%!)0 -
All depends what the lender will offer you when you apply for the port. Let's say that they'll offer you 85% on the new property which has a purchase price of £125k. You will need to find £18,750 as a deposit, with a new mortgage of £106k.0
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