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Mortgage Porting

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gillipuk
gillipuk Posts: 3 Newbie
in Mortgages & endowments
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 :)

Comments

  • libf
    libf Posts: 1,008 Forumite
    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
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    gillipuk Posts: 3 Newbie
    Thanks, i just wasn't sure if I was prting the mortgage amount but now I understand its the product ☺
  • laurasavon
    laurasavon Posts: 475 Forumite
    Would you not use the equity in your current home as the deposit?
    Jan 2010 - Overdraft £9,500 / Credit Cards £5,000 / Loan £9,500 / Mortgage £128,000
    Jun 2010 - Overdraft £0 / Credit Card £0 / Loan £0 / Mortgage £125,250
    Oct 2011 - Overdraft £7,000 :mad: / Mortgage £115,295
    Dec 2014 - Overdrafts 15,000 / Credit Cards 16,000 / Loans 25,000 / Cars 18,000 / Mortgages 232,500
  • gillipuk
    gillipuk Posts: 3 Newbie
    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
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
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