Porting a mortgage

robatwork

SpiderLegs said:

Tumtitums said:

im confused if i am not paying back any of the £100000 with the proceeds of the sale then why would i need to raise another £100000 as i would have £200000 from the sale and the £100000 i am already borrowing therefore i would only still be paying back the £100000

Under your logic you can then sell that 300k house, receive 300k in cash, port your 100k mortgage and then buy a 400k house.

then you can sell the 400k house, receive 400k in cash, port the 100k mortgage and then buy a 500k house.

then you can sell the 500k house, receive 500k in cash, port the 100k mortgage and then buy a 600k house.

then you can sell the 600k house, receive 600k in cash, port the 100k mortgage and then buy a 700k house.

then you can sell the 700k house, receive 700k in cash, port the 100k mortgage and then buy a 800k house.

then you can sell the 800k house, receive 800k in cash, port the 100k mortgage and then buy a 900k house.

then you can sell the 900k house, receive 900k in cash, port the 100k mortgage and then buy a 1m house.

then you can sell the 1m house, receive 1m in cash, port the 100k mortgage to buy a 100k house.

congratulations. You are now a millionaire.

I only wish the inventor of ctrl-c ctrl-v was still around to see this.

SpiderLegs

Tumtitums said:

well it seems that you are suggesting that its compulsory to pay back the £100000 after the sale is completed . This isnt what i thought porting was. I thought it was just taking the £100000 to a new property  under the same conditions

No that’s wrong. But even if it were true you are still missing the point.


your 100k mortgage is a debt. You have already received that money.
if you then receive 200k cash from selling your house and do not use half of it to pay off that debt, then you still need another 100k to buy the next 300k house.
if you want the bank to give you that extra 100k then you will now owe them a total of 200k.

Gavin83

Tumtitums said:

well it seems that you are suggesting that its compulsory to pay back the £100000 after the sale is completed . This isnt what i thought porting was. I thought it was just taking the £100000 to a new property  under the same conditions

But the mortgage isn’t your £100k, it’s a debt. The vendor will want £300k for their house. The bank isn’t giving you £100k, in fact it’s quite the opposite. You’ve already had that money and you still owe it.

AdrianC

Tumtitums said:

well it seems that you are suggesting that its compulsory to pay back the £100000 after the sale is completed . This isnt what i thought porting was. I thought it was just taking the £100000 to a new property  under the same conditions

You're borrowing £100k from the same lender you borrowed £100k from on the same terms.

Is it the same £100k? Who cares?

You own a £200k house and have a £100k debt secured against it.
You move. You have your £100k equity and £100k borrowed money... <waits for other £100k to magically appear>