2nd time buyer - port mortgage or pay ERP

sillysausage85

Hi team,
really need some advise.

I'm a recently new first time buyer, however am now looking to move and sell and rebuy our second home.

We currently have a 158k mortgage (5.5% on 25years) on a 275k house, the property we'd like to purchase would be £375k with no additional money to put in.

Please help me understand what to do to help afford the new house. Our current monthly repayments are £970, and we're fully prepared for this to increase with the new purchase, but I'm unsure how to best borrow the additional £100k. Is it to pay the ERP and get a brand new mortgage which I'd assume would be around the 4-4.5% now, or port and add the additional borrowing? Or do you get a completely brand new mortgage to cover the extra?

Complete newb and need some help.

Thanks

Hoenir

sillysausage85 said:

We currently have a 158k mortgage (5.5% on 25years) 

I'd be surprised if you have a fixed term 25 year mortgage. Worth checking when the product term comes to an end. 

Have you factored in the cost of moving? There's estate agents, legal fees, stamp duty plus all sorts of incidental costs to be considered. 

Paying a large ERC isn't normally advisable.  Porting the existing product and obtaining further borrowing from your existing lender may well be the best way forward.