Need Bigger Home But 2 Years Into 5 Fix

Kiyonari

Hi,

We need to move house due to expanding family, which we were not planning when taking out a 5 year fix.  Currently 2 years in with Nationwide on a 2.14% owing 63000, house value 120000-140000.  Got a budget of approx 220000.  Read I would pay 3% ERC on the remainder if I were to move now, hoping the stamp duty cut would offset some of this?  Someone mentioned porting a mortgage to me, how does this work and would it be cheaper to do this than to remortgage? 

dimbo61

Porting might be cheaper as you port the current mortgage and borrow the rest from the same lender at whatever rate they offer.
However you might find a better offer if you use a broker to search the market 

getmore4less

Port and 3y fix additional borrowing will be the benchmark for moving the lot to a new rate with ERC.
Consider borrowing more than you need on the new rate so you can max out the overpayment on the higher rate.
(being careful of the LTV boundaries that trigger a higher rate)

foxy-stoat

It will cost you an additional £2,000 to move into a bigger house, along with all the other expenses.  I suppose is that a small price to pay to get your into a bigger house.

Speak to your lender for options on porting and what the new interest rate would be on the additional borrowing to see if its worth going down that route.

Kiyonari

Need to speak to my lender then about porting and weigh up whether or not its cheaper to move all to new mortgage on lower rate.  Can anybody recommend a good broker?