Porting Mortgage

starburst12

Hi

Please can somebody confirm I am thinking logically! I think I have been thinking about this too much and confusing myself now!

The situation;

Current house valued @ 190,000.00

Current Mortgage 46000.00 - Porting to new property

Looking at new house purchase price 300,000.00

Deposit 36000.00

Additional borrowing 28000.000

Basically what I am am asking is;

As I am looking to purchase a property for a greater value (300,000.00), am I right in thinking that the current property value (190000.00), the whole amount will be used against the new purchase price?

In other words are the above figures correct and my thinking?

Many thanks

kingstreet

Now;-

£190,000 sale proceeds minus

£46,000 mortgage repaid
________

£144,000 equity remaining to pay fees and for onward purchase.

Then;-

£300,000 purchase price minus

£144,000 from above if all used (your choice)
________

£156,000 new mortgage requirement.

You port the rate from your old mortgage to the new one and take the £110,000 increased borrowing on one of the lender's new rates.

Contrary to some opinions, you cannot transfer a mortgage from one property to another, so what actually happens is set out above.