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porting mortgage to lower value property

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we are 2.5 years in a 5 year fix with Nationwide
we want to sell our house ( going on market in next few weeks ) and purchase a  flat 
due to equity in our house we would only require our mortgage on the flat to be half the value of what we have left on our current mortgage
how does porting to lower property work?
 would we still have the same amount of mortgage as we currently have on our house or would we use our equity to pay some off and only half a mortgage for half the amount ?

Comments

  • kingstreet
    kingstreet Posts: 39,254 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You port the amount you need for your next purchase and pay any ERCs on the amount left which has been redeemed from the sale proceeds. The remainder of the sales proceeds is your "deposit" for the new purchase.

    EG

    £400,000 sale less
    £300,000 mortgage
    ________
    £100,000 equity for deposit.

    then;-

    £300,000 purchase
    £100,000 deposit
    ________
    £200,000 new mortgage (ported rate) leaves

    £100,000 redeemed attracting ERC.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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