as the name suggests

portable_mortgage???

As the name suggests I am extremely confused by the 'portable mortgage'. My house will shortly be going on the market at offers over 155k. We owe on our mortgage 102k. Our mortgage advisor suggested a 'portable mortgage', where he said that our mortgage is transferred to a new property. New property will be in the region of 80k, and although he did sort of explain it to me I still do not understand how this works and what I will have at the end of the day - a 'new mortgage', the same mortgage - cash left over??????

Replies will be much appreciated - (for some reason I cannot get this info into my head - enid blyton version welcome)

Thanks

Doozergirl

Hello portable mortgage!

It sounds like the same mortgage - The interest rate, terms and the length of time you have left to pay your mortgage off will stay the same but the amount of money you owe and the monthly repayment amount will reduce.

Each mortgage is different but you can usually only borrow about 80% of the value of the property you own, so there is no way they will let you owe £102k on an £80k property!

I assume that you had an amount in your mind that you would like to borrow on your new home? You will have to pay back the difference between that amount and the £102k you owe now from the proceeds of the sale of your current property. The rest is your equity.

It's a bit hard for me to explain, I've tried to keep it as short as I could. The best thing for you to do is give your mortgage company a call on Monday and explain that you are planning to sell and want to transfer the mortgage to a new property. I'm sure they'll be able to explain much better than me.

I hope I've helped a little bit.

Is your mortgage with your bank? You may be able to find a better deal elsewhere if you're moneysaving?

bridiej

I've moved this into the Mortgages section.

Fairdo_2

As Doozergirl stated, you would be hard pushed to borrow more than 100% of the property value. (Although some lenders offer this, it is unlikely that your mortgage would have been set up on this basis in the first place)

Are you in a Penalty period with your current mortgage?

If not, you have free reign to look elsewhere for a new mortgage.

If you have a penalty then you'll have to bear in mind that you will need to pay a proportionate penalty for the amount you pay off.