# Mortage Porting or starting again?



## 62mph (Jul 28, 2010)

Me again :tumbleweed:

As some of you may know from my other thread "2 money dilemas that are making my head hurt" that we have accepted an offer on our flat and have been looking for a new house to move into. We have found one and have had our offer accepted of £182,000.

I went to see the mortgage chap at Nationwide yesterday (our current mortgage provider) and he told me about porting my mortgage for the additional borrowing, which means our repayments will go up approx £125/month from what we are paying on this place.

However, if we pay off our current mortgage in full from the proceeds of our flat and then pay a early repayment charge of £4800, we can get a brand new mortgage which gives us alot more options (different banks and deals etc) which could mean our repayments could go up anywhere between £15-£50/month on top of what we are paying now.

The lower repayments are attractive to us as it gives us more flexibility with making overpayments, but it would mean paying the early repayment charge mentioned earlier.

My brain has completely turned to mush as I saw the mortgage advisor yesterday at 11.30am and have been trying to work out all the permatations since! I have about 10 pages of A4 paper with calculations and workings out 

Any help or advice would be _really_ appreciated


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## crazysnakeman (Oct 12, 2011)

it's difficult to offer advise on this sort of thing, because spending more in the long run might benefit you more, only you can really decide that one.

When I moved a couple of years ago I was 2 years in to a 5 year deal, I'm also with Nationwide, so I got a second mortgage for the extra and timed it to run out around the same time. The woman I saw at nationwide was great, she went through all the options open to me, I had a look online at other deals but couldn't match what they could do taking in to account the early redemption fee.

I guess the key is to make sure you can afford the repayments without struggling (too much anyway!).

When we moved in to our current house we needed a new boiler and new windows which were not budgeted for, so 2 months in and another £7.5k down. :devil:

One peice of advice, check the house over, then do it again. We missed the windows because they had the patio doors done, but not the windows. We didn't think to check them:wall:

Good luck with the move!

One last peice of advice, don't use Premier Property Lawyers for the conveyencing, I did and they were pants. They lost my wedding certificate!


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## GJH0702 (Oct 21, 2011)

Both Nationwide and your broker should give you quotes about the full cost of mortgage if it runs to the end.
Then need to look at do you need less outgoings if not which cost less over the term ( factor in £4800 fee) and then which pays off soonest
Hope this helps


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## bigslippy (Sep 19, 2010)

Hi there , not enough info .... if you like you can pm me your contact details and I'll gather what I need to give you some guidance:thumb:


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## Huw (Feb 16, 2007)

Will the new mortgage be on a fixed rate for a fixed period? If so how long?


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## 62mph (Jul 28, 2010)

If we went for a new mortgage we could fix it at 3.99% for 3 years. 

If we carry on with the mortgage its £120 extra a month so really its only £60 extra a month each so not the end of the world - We would just both be much more comfortable paying abit less as it gives us more flexibilty with over payments.

This is what we are looking at at the moment. 

Current mortgage repayments £582/month which is fixed for another 2yrs at 3.99%
If we 'port' the extra money in repayments will be £706/month fixed for 2 yrs at 4.99%
OR
Pay off the mortgage (and pay the Early repayment charge of £4800) then our monthly repayments would be between £592-£630 depending on what deal we go with

Proper headache stuff!:wall:


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## Huw (Feb 16, 2007)

Porting the existing mortgage works out at £706 x 24 = £16944, new 3yr deal, £611 (average of the monthly payment figures) x 36 = £21996 + £4800 redemption penalty = £26796. 

Are there any arrangement fees to pay with either mortgage, if so how much? What rate will the existing mortgage change to when it ends?


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## R26Andy (Apr 21, 2011)

Im currently in the process of moving and porting plus taking some additional borrowing and have done it before also.

When porting and borrowing more, you should have two seperate rates, one for the ported element of the mortgage (£XXXk @ 3.99%)and one for the additional borrowing element (£XXXk @ X.XX%). You only seem to have one higher rate of 4.99% for the entire mortgage which doesnt seem right.

To making ditching your existing rate worthwhile and suffering the huge penalties you would need to be saving £133/month+


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## 62mph (Jul 28, 2010)

R26Andy said:


> Im currently in the process of moving and porting plus taking some additional borrowing and have done it before also.
> 
> When porting and borrowing more, you should have two seperate rates, one for the ported element of the mortgage (£XXXk @ 3.99%)and one for the additional borrowing element (£XXXk @ X.XX%). You only seem to have one higher rate of 4.99% for the entire mortgage which doesnt seem right.
> 
> To making ditching your existing rate worthwhile and suffering the huge penalties you would need to be saving £133/month+


Hi Andy

Our main mortgage is at 3.69% and the extra we ported we managed to get 4.09%


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## Goldbug (Sep 23, 2011)

62mph said:


> Me again :tumbleweed:
> 
> As some of you may know from my other thread "2 money dilemas that are making my head hurt" that we have accepted an offer on our flat and have been looking for a new house to move into. We have found one and have had our offer accepted of £182,000.
> 
> ...


http://www.thisismoney.co.uk/money/...meowners-trapped-banks-start-tough-loans.html


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