Porting a frm to a new property help?

D4nny

Hi guys i asked my financial advisor about this but forgot to write it down,basicly il use these figures as a guide but we have 80,000 left to pay on our mortgage,if the house is valued at 110,000 and sold for this amount. we have seen a new house for 160,000 what would be the size of the mortgage required ontop of our original 80,000 mortgage we would have to keep paying due to being tied into a fixed rate and the exit penalty is too much to pay to leave the fixed rate.

Thankyou

kingstreet

You have £30k equity to use as a deposit, less any fees.

You would need a mortgage of £130k if you put down all your £30k if buying for £160k.

Your new mortgage would be split into two sub-accounts, one for £80k to represent your existing borrowing at the existing rate and another for the £50k increased borrowing which would normally be given on one of the lender's new products in the £130k on £160k (upto 85%) LTV band.

FWIW you cannot transfer a mortgage from one property to another. Your mortgage is repaid on the sale of your current property. Portability allows you to transfer the current rate from your existing mortgage if you meet the lender's requirements for a new mortgage.