practicalities of downsizing mortgage

[Iggly]

Hi can someone explain to me the costs and practicalities of downsizing please?

We want to move to a different area with cheaper housing. This gives us the scope to cut our mortgage costs and me to reduce my working hours etc.

But I cannot get my head around the mortgage. We have about 40% equity (assuming we sell for the average price estimated for our home - obviously could be less or more) so would use some of this to pay off some mortgage and stamp duty etc.

Would it be possible to port our mortgage (which we would reduce) or do we pay off the existing mortgage in full then get a new one? We've not long remortgaged so don't fancy losing our current deal - is it unavoidable?

I will talk to our mortgage provider at some point but would welcome actual experiences please!

Thanks

You do have to pay off the existing mortgage and take a new one. The lenders sometimes let you take the new one out on the same terms as the last if you got a special deal on the interest rate. The mortgage offer you got for the current mortgage will tell you if this is the case. I wouldn't let the mortgage situation put you off downsizing. On the long run it is really not a big deal compared to getting the house you want and a chance at paying off a lot of the debt early.