Slightly confused - port a mortgage

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)
 

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  • Edi81
    Edi81 Posts: 1,426
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    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
    ACG Posts: 23,622
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    £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. 
    I am a Mortgage Adviser
    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.
  • KerrBearrxo
    KerrBearrxo Posts: 49
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    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.
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