Is Porting remainder of a current mortgage worth it?

Hobbin_Rood

Hi,

I've tried my best to find ways to calculate this myself, but can't quite tell which option is best for the following financially:

-Have £48k of a 1.49% fixed term left (deal ends Feb 2026) with Nationwide

-Have bought a new house, and mortgage needed for this is £172,500

-Best mortgage i can get with new lender for 5 year fixed term is 3.55% (Halifax) - and there's £1900 charge for early repayment with NW for £48k remaining.

-If I port, then best deal with NW is 3.99% for the remainder of new mortgage (i.e. £172500 - 48000 = £124,500).

So question is, is it best to keep the 48k at 1.49% with NW for that 3.5 years remaining and take the hit with higher 3.99% rate versus better 3.55% rate with Halifax but taking into account the £1900 charge too.

Realise then there's inconvenience of having two different deals running on different time frames and having to re-arrange them apart etc.

Any insight or tools etc available to make an informed decision would be welcome.

Cheers,

Hobbin.

Hobbin_Rood

No budding financial experts here then? 🤣

Edi81

It all comes down to monthly payment  

I’ve got 4 years left on a 1.24% fixed but am choosing to pay the ERC to take out a 26 year mortgage for my new property (mortgage 3x the amount outstanding) as I wanted the lower payment and the certainty of payments for 10 years. 

It really comes down to what you feel comfortable with. 

twoLou

You may get more of a response and advice if you put you post in ‘Mortgage  broker ask me anything’ post which you’ll find on here if you scroll a bit - currently on page 2
I hope that helps.