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Original poster

Porting mortgage

8 replies

Amtheyest17 · 04/07/2023 12:11

Hello,

So I am porting my mortgage and taking out additional borrowing - all set up and ready to go once we complete on our new place. I have just looked at the breakdown of costs and I know the first month is always a bit more expensive (I don’t understand how but I know this is the norm) and obviously now our loan is in two parts and the part 1 that we are currently paying on our current house is currently £1580pm but that first month in the new house is going to be £2700 once you add on the additional borrowing it comes up to £4k!! Does anyone know if this is correct? Obviously when part 1 started at the beginning of the year we paid £2200. Assuming it is but just feels a bit wrong….

Can anyone explain it to me?

OP posts:
menope · 04/07/2023 12:20

I don't understand why part 1 is higher, that should just be your normal rolling mortgage. The higher payments are due to the fact you accrue interest from the day the money releases and it depends on when the first payment falls as to what you "owe" (although not all banks do it that way). But your ported mortgage shouldn't be any different from my experience, have you had to refix it at a different amount?

Original poster
Amtheyest17 · 04/07/2023 13:27

menope · 04/07/2023 12:20

I don't understand why part 1 is higher, that should just be your normal rolling mortgage. The higher payments are due to the fact you accrue interest from the day the money releases and it depends on when the first payment falls as to what you "owe" (although not all banks do it that way). But your ported mortgage shouldn't be any different from my experience, have you had to refix it at a different amount?

Exactly my thoughts! We have not refixed at a different rate - so I don’t understand it either. I’ll have to call them

OP posts:
ACurlyWurlyTail · 04/07/2023 15:50

Mortgage payments are calculated at per day cost check the wording sometimes the mortgage paperwork calculates the first payment based on a whole month and they give you worse case senario in the offer/paperwork

e.g the payment is due on 1st and then you move on the 2nd. The next month you will be paying payment from 2nd to month end plus current month.
However if you pay on the 28th and you move on the 29th then your payment will be full month plus 29th to end of current month.....if that makes sense.

AlleeBee · 04/07/2023 16:35

When we ported our mortage the payments increased because we maxed out the loan by borrowing what we'd previously paid back.

e.g. Say we initially borrowed £100k but over the years had paid back £20k so the mortgage was currently £80k. When we moved we increased the loan back to £100k (because that mortgage was at a better rate than the new mortgage) and started a second mortgage to cover the rest of the money we needed to borrow.

Could it be that something like that has happened for you?

menope · 04/07/2023 16:39

@AlleeBee I didn't even know that was an option!

Original poster
Amtheyest17 · 04/07/2023 17:48

AlleeBee · 04/07/2023 16:35

When we ported our mortage the payments increased because we maxed out the loan by borrowing what we'd previously paid back.

e.g. Say we initially borrowed £100k but over the years had paid back £20k so the mortgage was currently £80k. When we moved we increased the loan back to £100k (because that mortgage was at a better rate than the new mortgage) and started a second mortgage to cover the rest of the money we needed to borrow.

Could it be that something like that has happened for you?

I didn’t know you could do that! But no, don’t think that’s the case because our following payments after the initial (HUGE) one have actually gone down by £10pm to reflect what I guess we would’ve paid off by that point!

OP posts:
ThursdayFreedom · 04/07/2023 17:53

menope · 04/07/2023 16:39

@AlleeBee I didn't even know that was an option!

It's not with my bank, you can only port the outstanding balance.

dreamersdown · 04/07/2023 20:34

It’s as the poster above has said, you’ll be paying a one off “super payment” to cover the previous month.

We’re in EXACTLY the same situation, having just moved. We paid our normal mortgage on the old house on the 1st June, moved on the 12th. We were then refunded the payment we’d made on the 1st June. We will pay a “super payment” on the 12th July (1-12 June of the old mortgage, plus 12 June - 1 August of the new mortgage) and then it will go out as normal on the 1st August.

Does this help? Yes, it’s a big amount, but you will be refunded the mortgage payment of the month you’ll move out in so that will cushion the cost.

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