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Porting to free up equity
edwardsl1985
Posts: 10 Forumite
I have a house that has increased in value in the past 3 years. It will sell for offers in excess of 200k, the remaining mortgage is about 163k so I anticipate around 40-45k of equity.
I was thinking of buying something in the 180k region. My current mortgage rate is excellent at 2.5% locked in for another two years.
im hoping to port my mortgage to a cheaper property and was wondering if I do this can I put 10% down on the next property and that remaining equity take as cash?
im hoping to port my mortgage to a cheaper property and was wondering if I do this can I put 10% down on the next property and that remaining equity take as cash?
I have a few loans and credit cards that I’m hoping to pay off.
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Comments
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Potentially. But im not sure if it makes sense...
Estate agents - £1-2k.
Solicitors - £2k
Stamp duty £1,100
Almost 25% of your equity wiped out in moving costs.
It would probably be cheaper to try and take out a top up mortgage to pay off the debt.I am a Mortgage AdviserYou 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.0 -
Well I wouldn’t pay the stamp duty as I’m buying below the threshold
the reason I’m moving is I live in a high value post code at the moment so my 200k house is a 2 bed with a tiny spare room and a garden that needs a lot of work.
some of the properties I’m seeing in a different area are around 180k with much more house for the money. So it’s not solely to free up money. I’m wondering if in the process of living I can free up that cash0 -
You might want to check - £180k home mover suggests its £1,100 - https://www.stampdutycalculator.org.uk
I am a Mortgage AdviserYou 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.0 -
Oh thanks for this. I should have said I live in wales and the thresholds are different. Over here it starts at 225k. I used the welsh gov calculator1
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You learn something new every day! I did not know you guys had different thresholds.edwardsl1985 said:Oh thanks for this. I should have said I live in wales and the thresholds are different. Over here it starts at 225k. I used the welsh gov calculatorI am a Mortgage AdviserYou 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.1 -
£1,100 is correct as you are not a first-time buyer...edwardsl1985 said:Well I wouldn’t pay the stamp duty as I’m buying below the threshold
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No Land Transaction tax on purchases under £225,000 in Wales.
As to whether the Lender will allow port on the product on to a 90% loan to value mortgage - that will depend on the Lender.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.1 -
New one for me tooACG said:
You learn something new every day! I did not know you guys had different thresholds.edwardsl1985 said:Oh thanks for this. I should have said I live in wales and the thresholds are different. Over here it starts at 225k. I used the welsh gov calculator
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