Question about porting a mortgage

deejaybee

Hi all,

Just trying to get my head round the maths of this..

I am porting my existing outstanding mortgage amount over to another property, its all been finalised ( on the current amount outstanding ) but it will probably be 3 months ( ish ) before completion of my sale and purchase.

So the figure quoted now to be ported is 62,905, i am assuming this is fixed in stone now, however i paid an instalment a few days ago, so my online balance outstanding is 62,121, and will most likely pay another 2 or 3 instalments before completion.  So another 2 payments it will be in region of 60,700, over 2K less than the porting figure.

How does this work in practice ?  The property i am buying is more expensive than current one and i am funding the difference with own funds, not increasing the mortgage - Does this mean in effect that i will have to put 2K ish less out my own funds towards the purchase ?  ( obviously assuming the 62,905 will definitely be the ported amount )

Porting will continue my existing good rate ( 1.29 % ) till end of August, and will save me the cost of an ERC.

amnblog

Your available 1.29% ported rate will be limited in size to to the final balance on the current property.

As you make payments. your existing balance drops, your equity increases, raising your sale proceeds. Therefore your mortgage need for the purchase should drop - everything therefore balancing.

deejaybee

Cheers amnblog - as per your post, thats what i assumed would be the case, but all the letters i have received have quoted the 62,905 figure hence my confusion.

Ill contact them ( Barclays ) and see what they say.