Question regarding porting

Joeisaware539

One of my best girlfriends is porting her house potentially but I wanted to ask question on here.

is it better to port or get a new mortgage deal with new lender? Because with porting you have two products? 

She wants to sell her current property and tell new mortgage company she will have so much equity to put towards as deposit once sold is this possible? 

Current lender won’t support because she’s now SE via TSB. When we got mortgage she was employed. I don’t know if anyone else has this with TSB being dead against self employed?

If she was to do this, e.g. sell her current house and then use the equity towards new mortgage product for new house how does it work? 

K_S

@Joeisaware539

- If she no longer meets current lender's income criteria, then porting with additional borrowing is unlikely to be an option

- If she will be using a new lender to buy the new house, then will likely have to pay an ERC to the current lender

- assuming that the home move will be a simultneaous completion (old house being sold and new house being bought on the same day), the equity from the sale will land with the conveyancer, some/all of it will be used as deposit for the onward purchase plus costs, and any remaining cash will reach your friend's bank account.

Joeisaware539

K_S said:

@Joeisaware539

- If she no longer meets current lender's income criteria, then porting with additional borrowing is unlikely to be an option

- If she will be using a new lender to buy the new house, then will likely have to pay an ERC to the current lender

- assuming that the home move will be a simultneaous completion (old house being sold and new house being bought on the same day), the equity from the sale will land with the conveyancer, some/all of it will be used as deposit for the onward purchase plus costs, and any remaining cash will reach your friend's bank account.

That’s what I said to her. 

So basically it’s a chain swap whereby her house is sold same time as she buys new one using the equity of £45,000 from our current house to buy her new one.

She wants to use all the equity towards new house is this possible I imagine it is after costs deducted?

She basically her house is sold at same time she applies with new mortgage company as if the deposit for new house is already there as it will be sold same day as she legally takes ownership of new house? 

How does she work out what she will have left after costs prior to completion for new mortgage.

Sorry if I’m confusing this but I’ve never been in this position to offer her any advice on what is best action.

[Deleted User]

Mortgage redemption amount + estate agent costs + legal costs for buying and selling = amount left over from current property 

Joeisaware539

Deleted_User said:

Mortgage redemption amount + estate agent costs + legal costs for buying and selling = amount left over from current property 

Thanks so she’s get that and then tells new lender she has that for new property easy a cake.