Relocation/Mortgage questions

Mrsemmapage · 29 May 2018 at 12:14PM

Hey everyone,
Wanted some advise please. My husband and I currently have a mortgage of £159950 fixed just recently for 2 years and are relocating with jobs to Devon. We have a property valued at 275K and are looking at a new property of 190K. I realise we are goingto have to port our mortgage as we are still in the fixed rate term, but what happens when the property is less than the current mortgage amount.
I presume we will pay the difference back to the lender? we want to put down a 100k on the new property so in effect only have a 90K mortgage.

Can you help.

YHM · 29 May 2018 at 12:29PM

Depends on the terms & conditions with a given particular lender, but usually you would a proportionate Early Repayment Charge.

Mrsemmapage · 29 May 2018 at 12:48PM

I thought that's why you could port a mortgage to avoid an Early repayment charge?

YHM · 29 May 2018 at 12:51PM

Yes, but you will only be porting a proportion of the mortgage.

Lenders will still stick to their guns on the associated charges, otherwise everyone would just port £1 of their existing mortgage to their new property to avoid Early Repayment Charges.

Mortgage_Adviser · 29 May 2018 at 1:52PM

OP. You would be best speaking to the lender directly here as this will be to do with their internal procedures.

enthusiasticsaver · 29 May 2018 at 5:57PM

You have two choices. You can either repay part of the mortgage and port the rest to your new property but there will be an ERC on the £69950. Alternatively you can port the whole mortgage across to the new property so keeping the same amount on mortgage and invest or save the £69950 until the fixed rate deal is up. Do the maths as whether this is worth it or not depends on what you could perhaps get if you saved in say a fixed term bond for 2 years and what rate you are paying on your mortgage and what the ERC is.