Slightly confused - port a mortgage

dothebartman

If im selling my house for £360k with a (portable) mortgage of £150k, and am buying a £700k
house then do i need to raise a new mortgage for: £190k (ie. use £360k as deposit, port the £150k leaving 190k additional borrowing)
OR would it be a new mortgage for: £340k ( £210k deposit, port the £150k leaving £340 additional borrowing)
 

Edi81

dothebartman said:

If im selling my house for £360k with a (portable) mortgage of £150k, and am buying a £700k
house then do i need to raise a new mortgage for: £190k (ie. use £360k as deposit, port the £150k leaving 190k additional borrowing)
OR would it be a new mortgage for: £340k ( £210k deposit, port the £150k leaving £340 additional borrowing)
 

You have £210k of equity

house price £700k
equitt £210k
ported mortgage £150k

balance to fund via additional borrowing from existing lender £340k

new mortgage value = £490k which will be subject to full affordability

ACG

£700k purchase price
- £210k equity (from the sale of your property),
- £150k mortgage you already have.

Means you need to find/apply for £340k

Your total mortgage on completion (assuming you are applying for the £340k) is £490k.

Obviously just using rounded figures, they do not take into account stamp duty, solicitors, agents fees etc. 

KerrBearrxo

Keep in mind that when you port a mortgage, you are stuck with that lender until you get both mortgages to expire at the same time.

For example, you have a Fixed Term Mortgage that ends in 2025 for 100k on your old house
You start a new Fix Term Mortgage that ends in 2026 for the extra amount you need for the new house, lets say its 100k

You now have 2 products with the lender (2 mortgages essentially) and you will have to put the one that ends in 2025 on a 1 year or a tracker to marry up so it expires or is ready to renew with the 2026 one, otherwise, you are stuck with that lender and unable to shop around.