Can I just ask please. So if I want to sell the property, port the existing mortgage and apply for small additional borrowing secured against the new property do I need to obtain a decision in principle first or do I contact the bank after an offer on the house I am looking to buy has been accepted? Is there any way for a little certainty because what if an offer has been accepted but the additional borrowing not granted by the bank? That would mean the chain will collapse and costs for everyone for legal work done to date.
@Kam-fm9tq definitely get a decision in principle for the porting and additional borrowing! You can do this with a mortgage broker but they may charge a fee, or directly with the bank. My opinion is that a broker is better as they'll go into more depth with their checks and give you more certainty.
Great video explaining the details. Thanks. I am on a 5 year fixed with a low interest rate (< 2%) that is due to end in Dec this year and looking to buy another property. Instead of selling, if I were to let my property out, and I get a consent to let on my current repayment mortgage - will I be able to release equity for my next purchase?
In this case it will come down to the lender and their rules so I'm unable to answer unfortunately. In some cases they'll give consent to let but won't allow extra borrowing and will ask you to switch to a buy to let mortgage when your fixed term ends. But this is different with different lenders. The best way to be sure is to call them. I'd be happy to help you with your next mortgage if you require help 😊
Thank you for the great explanation. My question is: we live in a house that we renovated and made profit on, but haven’t taken out the equity yet. We would like to move, but because we have a low interest rate, we would like to keep the current mortgage and take it to the next home (port). How do we take the equity from our current home, while taking this mortgage to the next home? Any recommendations please?
@19Rz91 Ah okay I understand! So, whatever your mortgage balance is now, that's the amount you can port. Then if your next mortgage is going to be bigger, you apply for an additional mortgage with the same lender. You'll then have two mortgage accounts with different rates. The new one will be on whatever rate they offer you now. Your equity is just the difference between your mortgage balance and how much you sell your property for. Example using £100,000. You own a house which you sell for £150,000 and your mortgage is £100,000 on 3%. You want to buy a new house for £200,000. You port your £100,000 mortgage and use the £50,000 equity as deposit. But you're £50,000 short, so you apply for an additional mortgage for £50,000 and that one won't be 3%. It will be whatever you're offered at the time. £100,000 ported mortgage + £50,000 equity + £50,000 new mortgage = £200,000 new house with a £150,000 mortgage split into two parts.
Brilliant video. Thanks alot. If i want to port and purchase a property with same value, for example if I bought the property for £190,000 and I have paid off £20,000. Looking for a next property in the same value.. Will it be £170,000 or could I look at a property worth the original amount of mortgage, which is 190,000.
When you have a repayment mortgage, your monthly payment includes both interest and repaying the original figure so that after the mortgage ends, you own the property and don't owe anything :)
I own a property with a mortgage and am looking to sell(simply that,no other mortgage or new property)just wondering do I contact the bank first or the estate agents?🫡thanks.
@themilkman5768 hey! If you're not looking to buy a new property, you'll just need to contact an estate agent. Then once you have accepted an offer you'll need a conveyancer to do the legal work. Contact the bank to find out exactly how much you'll owe in total when you repay the mortgage! 😊
Well explained, and very clear. Good job mate. Thank you.
Thanks so much for your feedback 😊 please get in touch if you ever need assistance!
Can I just ask please. So if I want to sell the property, port the existing mortgage and apply for small additional borrowing secured against the new property do I need to obtain a decision in principle first or do I contact the bank after an offer on the house I am looking to buy has been accepted? Is there any way for a little certainty because what if an offer has been accepted but the additional borrowing not granted by the bank? That would mean the chain will collapse and costs for everyone for legal work done to date.
@Kam-fm9tq definitely get a decision in principle for the porting and additional borrowing! You can do this with a mortgage broker but they may charge a fee, or directly with the bank. My opinion is that a broker is better as they'll go into more depth with their checks and give you more certainty.
Great video explaining the details. Thanks. I am on a 5 year fixed with a low interest rate (< 2%) that is due to end in Dec this year and looking to buy another property. Instead of selling, if I were to let my property out, and I get a consent to let on my current repayment mortgage - will I be able to release equity for my next purchase?
In this case it will come down to the lender and their rules so I'm unable to answer unfortunately. In some cases they'll give consent to let but won't allow extra borrowing and will ask you to switch to a buy to let mortgage when your fixed term ends. But this is different with different lenders. The best way to be sure is to call them. I'd be happy to help you with your next mortgage if you require help 😊
Thank you for the great explanation. My question is: we live in a house that we renovated and made profit on, but haven’t taken out the equity yet. We would like to move, but because we have a low interest rate, we would like to keep the current mortgage and take it to the next home (port). How do we take the equity from our current home, while taking this mortgage to the next home? Any recommendations please?
@19Rz91 Ah okay I understand! So, whatever your mortgage balance is now, that's the amount you can port. Then if your next mortgage is going to be bigger, you apply for an additional mortgage with the same lender. You'll then have two mortgage accounts with different rates. The new one will be on whatever rate they offer you now.
Your equity is just the difference between your mortgage balance and how much you sell your property for.
Example using £100,000.
You own a house which you sell for £150,000 and your mortgage is £100,000 on 3%. You want to buy a new house for £200,000. You port your £100,000 mortgage and use the £50,000 equity as deposit. But you're £50,000 short, so you apply for an additional mortgage for £50,000 and that one won't be 3%. It will be whatever you're offered at the time. £100,000 ported mortgage + £50,000 equity + £50,000 new mortgage = £200,000 new house with a £150,000 mortgage split into two parts.
Brilliant video. Thanks alot. If i want to port and purchase a property with same value, for example if I bought the property for £190,000 and I have paid off £20,000. Looking for a next property in the same value.. Will it be £170,000 or could I look at a property worth the original amount of mortgage, which is 190,000.
Does the mortgage include the interest owed? Or just the original figure?
When you have a repayment mortgage, your monthly payment includes both interest and repaying the original figure so that after the mortgage ends, you own the property and don't owe anything :)
So god damn confusing
If you'd like to book in a meeting on zoom I'd be happy to take you through it!
I own a property with a mortgage and am looking to sell(simply that,no other mortgage or new property)just wondering do I contact the bank first or the estate agents?🫡thanks.
@themilkman5768 hey! If you're not looking to buy a new property, you'll just need to contact an estate agent. Then once you have accepted an offer you'll need a conveyancer to do the legal work. Contact the bank to find out exactly how much you'll owe in total when you repay the mortgage! 😊
Thanks for the advice it's appreciated.