Confused about porting

Looking for some clarification about porting my mortgage.
I have sold my property STC and have a mortgage offer from my current lender Nationwide.
I owe £90,000 on my current property and have sold it for £210,000 meaning I have £120,000 equity.
New property is £343,000 and I am putting down £80,000 deposit.
I have worked with an independent mortgage broker and am staying with Nationwide and porting my £90,000 and have new borrowing of £175,000. 
In my head this is £90,000 + £80,000 + £173,000 = £343,000
What I am confused about is the £90,000 that I am porting. Am I correct that I am not paying it off via the sale of my property and therefore the money from my sale would total the sale price (210,000) minus the deposit on new property (80,000) leaving me with £130,000? I don't want to have £130,000 in the bank as I would rather put it as part of the deposit, meaning less borrowing for the new property.

I am not sure if I have explained this well at all, if I have completely misunderstood what porting is or if I have made a mistake and will be getting a bigger mortgage than I need!!!

Could anyone clarify this for me?

Comments

  • Lumiona
    Lumiona Posts: 225
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    edited 24 September 2023 at 6:01AM
    I've never ported a mortgage so not entirely sure how it works. However, I'd assume the £120k equity on your sale is the deposit and for a £343k house, you'd need a £223k mortgage.
  • Lumiona
    Lumiona Posts: 225
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    If you have an additional £80k in cash as more of a deposit then you can borrow less.
  • JGB1955
    JGB1955 Posts: 3,438
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    edited 24 September 2023 at 6:23AM
    If you have £80k in ready cash you only need to borrow an additional £53K.  The purchase price of £343K would be covered by ported mortgage (£90K), new mortgage (£53K), £80K cash deposit + £120K equity.
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  • I'm assuming your 80k deposit is coming from your 120k equity and you are choosing  to keep 40k of that for whatever purpose?

    When you port you are porting a deal or a rate on the amount you have left on your existing deal.

    Therefore new house is
    343k -80k equity deposit =263k

    90k of that will at your existing rate X% for however long I on that deal

    173k will be on your new mortgage deal.




  • silvercar
    silvercar Posts: 46,778
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    "I have worked with an independent mortgage broker and am staying with Nationwide and porting my £90,000 and have new borrowing of £175,000. "

    So new mortgage is £175k new borrowing plus your ported £90k = £265k total mortgage. Deposit is purchase price less mortgage so £343-£265=£78k.

    "
    I owe £90,000 on my current property and have sold it for £210,000 meaning I have £120,000 equity.
    New property is £343,000 and I am putting down £80,000 deposit."

    If by this you mean you have £80k savings to add to the equity, then your total deposit on the new place is 120+80=£200k, so your total mortgage needed is £143k, which would be the £90k ported plus a new mortgage of £53k. 

    Porting just means that the £90k will be on the same deal as you currently have and the rest of the mortgage on the new deal. It seems that you and the broker haven't understood each other very well. It is your broker's job to make sure he understands what you want and to apply for the amount you need. The broker is meant to be the mortgage expert and explain things in a way you understand, don't blame yourself.
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  • Thanks silvercar, yes I am confused and will ring my broker tomorrow to clarify!

  • kingstreet
    kingstreet Posts: 38,616
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    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.
  • kingstreet
    kingstreet Posts: 38,616
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    £210,000 sale price less
    £90,000 existing homeloan repaid from sale proceeds
    _______

    £120,000 residue plus
    £223,000 new homeloan based (£90kon old homeloan terms) & increased borrowing (£133k) on new terms
    _______

    £343,000 purchase price.
    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.
  • Wren14
    Wren14 Posts: 60
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    £210,000 sale price less
    £90,000 existing homeloan repaid from sale proceeds
    _______

    £120,000 residue plus
    £223,000 new homeloan based (£90kon old homeloan terms) & increased borrowing (£133k) on new terms
    _______

    £343,000 purchase price.
    Thank you! I thought this was the case but have now been spinning it round in my head and confusing myself.
    This is much easier to understand 😀
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