second time buyer help with figures

katie4

We bought our house for 66k (remaining mortgage balance currently £54000)


say we sold for 85k and wish to buy property for 120k -
How would things work in relation to deposit, porting (how much would additional borrowing be)


apologies if this is a really dull question its all confusing me at the moment ( mortgage company mon bs said we can port) my other query is about that we are stuck in 5yr fix with 4 remaining would it be better to port or sell and pay off mortgage with them and obtain new one?


Thanks

AnotherJoe

You went for a five year fix (paying higher rates) and then want to get out after one year? What kind of careless flibbetygibbet are you?
If you sold for £85k and bought for £120k my NASA grade supercomputer ran for hours and then worked out you'd need to borrow £35k more*, plus extras such as stamp duty, solicitors fees additional mortgage fees yada yada yada.
So you'd need an additional mortgage of say £40k
Hopefully maths is not involved in your job ?
Whether its better to port or not depends, errm, on the maths of the ERC and the new mortgage rate. Oh dear.
You most likely wont be asked for a full 10% deposit, the deposit paid to you being passed up the chain but if you were you'd need to find the difference between 10% of 88k paiud to you (clue, thats £8,800) and 10% of £120k (clue, thats £12k). I'll leave you to try to work out what that is :-)



* yes thats 120-85 !