Porting a mortgage

[Moancup]

I have a shared ownership mortgage (in my name only) which is approaching the end of its fixed term. I am (hopefully) about to sell my flat and DP and I will take out a standard mortgage together. I can afford to repay the mortgage now in its entirety but that will heavily eat into my savings.

How much hassle is it to port a mortgage if going from one borrower to two?

Should I just pay off the mortgage and accept that what’s left of my savings will be eaten up by stamp duty and legal fees?

We would definitely get a better rate on a new mortgage. As I said up thread, I realise I’m getting too hung up on trying to avoid an early repayment charge.

@Couldhavebeenme3

Oh, and please ensure your proportion of the equity is protected when you buy with dp, otherwise this thread will be meaningless should things ever turn sour.

Don’t worry that has been a given from day one!

Chuck the numbers into a calculator. I can't believe that an extra 2% on a £50k mortgage is going to be much over the six months you plan to be in your house. Compare that to the redemption penalty (these are commonly around 2% of the whole mortgage - so could be £1000). So you'd have to be paying £100 a month less for it to be worthwhile.

A quick MSE calculation suggests that the difference between £50k over 10 years at 3.5% and 1.5% is less than fifty quid a month.

Having just scoured the markets for my own remortgage, some lenders are charging £1k+ to tie in a deal. But then that would be portable, however you'd have to fork out again for a deal on the further borrowing (which might be higher rates than for the original mortgage)

In your shoes, and on your timescale I'd sit tight, wait for your deal to end and stay on svr for a couple of months until you're ready to get the finances/legals in motion for your new place. Scour the market for the best deals then (bear in mind your broker will not have access to the full market, and s/he will be receiving commission at least)

Absolutely no need to go through the hassle of paying of your existing mortgage in full (there will be fees here too, I think my mum pays £50 a month for secure deeds storage) before buying the new place.

I'm personally very debt-averse but mortgage doesn't really count in my head as priority debt iykwim

Thank you, that’s really helpful. I’ve done the numbers for my balance and it really doesn’t seem worth doing anything.