Mortgage

marky.fitz

Hi all sorry but wandering if anyone can help as I've had a brain freeze! 🤪

We have a house which we are selling for 500k and which has a 200k mortgage but our mortgage deal is very good so will be porting existing mortgage to new house.

We are buying another property which is valued at 500k so will use 300k from house sale and port mortgage of 200k

Leaving 200k in bank

We are then going to buy a flat and will use 100k in bank to purchase outright therefore leaving 100k in bank.

Come January 2027 our mortgage deal is ending so will use 100k left in bank to then pay off part of the 200k mortgage leaving a 100k mortgage.

Have we got our figures right or are we missing something?

Apologies for what seems like a really silly question.

Thanks

Mark

ACG

You have completely baffled me with those numbers.

Buying for £500k with a £200k mortgage = £300k needed.

Selling for £500k minus £200k mortgage = £300k in the bank.

Where is this additional £200k coming from to buy the flat and have as savings?

Obviously this is all assuming no stamp duty, estate agent, legal costs etc. Appreciate we are probably using rounded numbers for ease.

Emmia

Do you also have £200k in savings? If you don't I'm not sure how the maths works.

eschaton

Your brain freeze appears to have invented £200k.

I think I’ll try and see if I can have one.

MWT

It may help make things clearer in your mind if you stop thinking about porting the mortgage and consider what actually happens is you are porting the terms of your current mortgage to a new mortgage.

So you still have to pay off the first mortgage and take out the 2nd mortgage.

So you only get £300k cash from the first house sale, the other £200k goes to pay off the first mortgage.

You then use that £300k together with a new mortgage of £200k to buy the new house, but you get to have that mortgage using the terms you are porting from the old mortgage.

Diaz09

You might also want to check with your lender about the timings here - some have rules about how soon after porting you can make large overpayments without triggering early repayment charges. Since you're planning to overpay the £100k in January 2027, make sure this doesn't clash with any restrictions from when you originally ported the mortgage. Worth clarifying this upfront rather than getting a nasty surprise later.