Mortgage porting question, thanks

KinSt77

Hi, current situation is we have a cash buyer paying £270K for our house, we are buying a house £230K, we have 2 mortgages (using round numbers, for ease) one £3K and one £22K both fixed rate for 5 years. We are going to use the cash sale to pay £205K and port over the mortgages.  Speaking to our mortgage company after sending many documents, we now have a 2.5 hour telephone appt to arrange doing this, at the end of the convo to arrange this meeting, advisor said "we can work out what your new payment will be", my question is why would it change if we are not borrowing more or extending term why would it change? Thanks in advance for any advice.

kingstreet

Remember, your existing mortgage is repaid from the proceeds of your sale and you aren't porting the mortgage you are porting the terms of your two sub-accounts to a new mortgage. The term you take your new mortgage doesn't have to be the same - it can be shorter or longer as long as it is affordable. Many lenders are unable to offer eg 12 years, 3 months so you will have the option of going down to 12 or up to 13.

newsgroupmonkey_

We're porting our mortgage. We're also making use of the fact we can afford an extra £150 a month to remove 2 years from it too.

Bear in mind too, porting is taken as a new application, even if you're taking a fixed term etc. They re-analyse your income and expenditure as well as doing a hard search.

FWIW, ours is with Coventry and took 2 x 45 minute slots. The first was for the AIP. The second was the actual application.