Mortgage Porting

gillipuk

Hi, i am loking for some advise please. My current property is valued at 225000 with 164000 outstanding. The property I am want to move to is valued at 170000, I have offered 150000 as there is lits of work required. If I can secure the sale at 150000 and want to port my mortgage, taking early resettlement in account for the difference. Will I also need a 10% deposit on the 150000? Thanks

libf

Porting involves moving your current rate across only; the actual mortgage is 'paid off' and a new one is taken out. So whether you want to do that or not will depend on your current rate vs the rate with a fresh mortgage at which LTV you decide on, taking into account any early repayment charges you would face if you didn't port.

Thrugelmir

As you will be applying for a 90% mortgage. Maybe worth asking your lender if they will agree to port your current interest rate.

gillipuk

Thanks, i just wasn't sure if I was prting the mortgage amount but now I understand its the product ☺

laurasavon

Would you not use the equity in your current home as the deposit?

gillipuk

The house needs 30k of work, we have had an estimate. So with normal moving costs, the work and the deposit it is just possible.

Thrugelmir

gillipuk wrote: »

Thanks, i just wasn't sure if I was prting the mortgage amount but now I understand its the product ☺

Porting requires a full new application.