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Porting to free up equity

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edwardsl1985
edwardsl1985 Posts: 10 Forumite
Eighth Anniversary First Post Combo Breaker
in Mortgages & endowments
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? 

I have a few loans and credit cards that I’m hoping to pay off.

Comments

  • ACG
    ACG Posts: 24,536 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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 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.
  • edwardsl1985
    edwardsl1985 Posts: 10 Forumite
    Eighth Anniversary First Post Combo Breaker
    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 cash 
  • ACG
    ACG Posts: 24,536 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    You might want to check - £180k home mover suggests its £1,100 - https://www.stampdutycalculator.org.uk
    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.
  • edwardsl1985
    edwardsl1985 Posts: 10 Forumite
    Eighth Anniversary First Post Combo Breaker
    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 
  • ACG
    ACG Posts: 24,536 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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 
    You learn something new every day! I did not know you guys had different thresholds. 
    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.
  • MWT
    MWT Posts: 10,205 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edwardsl1985 said:
    Well I wouldn’t pay the stamp duty as I’m buying below the threshold 

    £1,100 is correct as you are not a first-time buyer...

  • amnblog
    amnblog Posts: 12,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
  • MWT
    MWT Posts: 10,205 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    ACG said:
    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 
    You learn something new every day! I did not know you guys had different thresholds. 
    New one for me too :)
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