To port or not to port

Mortgage_Mad_Millenial

We are currently in the terrifying process of buying and selling our first house! I am wondering if anybody can link me to a tool which will help calculate which of the below makes best sense for our situation when sorting the mortgage for a larger property.

Scenario - we will have a 40% on a property worth £260k. Our current 1.2% fix runs out in November 2024 and we have £80k outstanding.

Option A

-We port our 80k HSBC mortgage of 1.2% and borrow the additional £80k on a 5 year fix of 4.2%.

Option B

- We pay the £3k ERC and remortgage the whole 160k balance at a 10 year fix rate of 3.7%.

Is there a tool online where I can compare the 2 options to see the financial difference of both? I am imagining that option A will be cheaper initially but we would have certainty with the 10 year fix.

Thanks in advance and sorry if this is the wrong forum!!

chanz4

if can port port it

silvercar

Use a mortgage calculator to compare what you will be paying. 

What is the ERC on option A? You may want to pay the ERC on the new lending in November 2024, to move it all to a good deal somewhere else.

dimbo61

Crystal ball time 
Now that £3,000 ERC means the new 10 year fix costs more than 3.7% 
But it does give you Very long term security 
When are you moving ?
Will this be your long term home ?
I would check the HSBC website daily to see if any better deals come along.
Would there be a fee for the extra £80,000?
You would also be in the same position in Nov 2024 by having to stick with HSBC  or pay an ERC to change lenders.
Could you perhaps look at a 2 year deal