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Moving in together - two mortgages to port?
Withay
Posts: 1 Newbie
Hi there.
Our scenario is that my partner and I both own our own houses. We're both in 5 year fix mortgages with a number of years left on each of them. We'd like to move in together but neither of our houses is big enough for us both to live and work from home so we're looking at buying somewhere new together. We're trying to figure out the most sensible option for our current properties and are not sure what the best option is.
Option 1: Sell both houses and buy a new one together. Is it possible to port two mortgages into one new house? We both have the same mortgage provider if that makes a difference. If we can't we'd have to look at porting one (probably mine as it's the higher mortgage with longest left on the term) and buying ourselves out of the second.
Option 2: Sell one house and rent the second. We have enough funds to sell just my house and buy a new property leaving us with my partner's which has the lower mortgage to rent. What are the implications of this in terms of additional costs and potential tax? We know the rental value would be about £700 more than the mortgage payments.
Any advice would be great.
Our scenario is that my partner and I both own our own houses. We're both in 5 year fix mortgages with a number of years left on each of them. We'd like to move in together but neither of our houses is big enough for us both to live and work from home so we're looking at buying somewhere new together. We're trying to figure out the most sensible option for our current properties and are not sure what the best option is.
Option 1: Sell both houses and buy a new one together. Is it possible to port two mortgages into one new house? We both have the same mortgage provider if that makes a difference. If we can't we'd have to look at porting one (probably mine as it's the higher mortgage with longest left on the term) and buying ourselves out of the second.
Option 2: Sell one house and rent the second. We have enough funds to sell just my house and buy a new property leaving us with my partner's which has the lower mortgage to rent. What are the implications of this in terms of additional costs and potential tax? We know the rental value would be about £700 more than the mortgage payments.
Any advice would be great.
0
Comments
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Porting is taking a deal and applying it to a new mortgage on all or part depending how much the new borrowing is.
A Broker may know if you could take both with you to a new property and have 2 accounts depending if there is enough to cover new borrowing if not 3 accounts.
could ask lender if they would wave any ERC anyway if they just allow one
Have you calculated the ERC and and if there are any significant dates to watch out for like the ERC dropping.
Do you really want to become landlords and then thereis the extra SDLT for the new place.
I would look at a plan to reduce the ERC on at least one with max overpayments etc.
Is neither place adaptable to WFM on a temp basis
If you can sell one and afford a new place without renting out the other I would look at selling both but not be two bothered if they did not sync up perfectly.
Sell yours get the new place then sell the other fairly close together to reclaim the extra SDLT.0
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