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Port or pay off?
TamVilla80
Posts: 592 Forumite
Thought we had made a decision but after phone calls with mortgage provider today, having a wobble!
Husband inherited late Father In Laws house, worth £210,000, to be split equally between him and Sister. No mortgage on this house
We have had work done on the house for us to move in (using a loan and credit cards which has given us a debt of around £30,000, £20k of which is on a 5.9% loan and £10k on 0% credit cards)
Our old house has sold for £171,500 and we have £50,000 remaining on the mortgage. This has 6 1/2 years left to run and is on a fixed rate of 1.39 until December next year (we fixed when it was the lowest rate for as long as possible, very chuffed about that!) ERC would be 2%
The way I see it we get £171,500 for the sale of our old house, the solicitor gives £105,000 to sister in law, and we have around £5,000 to pay in estate agent / solicitor fees, so that leaves us with £61,500.
Had a call with mortgage provider today and they said we can port the mortgage and keep the £11,500 change, but if we are porting the mortgage then don't we get the £61,500 and the mortgage debt just moves over to our new house?! They also said we need to pay £290 for them to come and see how much the house is valued for but we already have an agreed rate of £210,000 from the probate?
Anyway, main question is we were going to port the mortgage as we could use the money to pay off the loan / credit card which is a higher rate and save the extra, but now we are thinking just pay off the mortgage instead and then use the money we save from not having a mortgage to pay off the debt as quickly as possible?
Think I'm just having a stress wobble but any advice is appreciated!
Husband inherited late Father In Laws house, worth £210,000, to be split equally between him and Sister. No mortgage on this house
We have had work done on the house for us to move in (using a loan and credit cards which has given us a debt of around £30,000, £20k of which is on a 5.9% loan and £10k on 0% credit cards)
Our old house has sold for £171,500 and we have £50,000 remaining on the mortgage. This has 6 1/2 years left to run and is on a fixed rate of 1.39 until December next year (we fixed when it was the lowest rate for as long as possible, very chuffed about that!) ERC would be 2%
The way I see it we get £171,500 for the sale of our old house, the solicitor gives £105,000 to sister in law, and we have around £5,000 to pay in estate agent / solicitor fees, so that leaves us with £61,500.
Had a call with mortgage provider today and they said we can port the mortgage and keep the £11,500 change, but if we are porting the mortgage then don't we get the £61,500 and the mortgage debt just moves over to our new house?! They also said we need to pay £290 for them to come and see how much the house is valued for but we already have an agreed rate of £210,000 from the probate?
Anyway, main question is we were going to port the mortgage as we could use the money to pay off the loan / credit card which is a higher rate and save the extra, but now we are thinking just pay off the mortgage instead and then use the money we save from not having a mortgage to pay off the debt as quickly as possible?
Think I'm just having a stress wobble but any advice is appreciated!
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