In the UK, the act of 'porting' a mortgage is moving your existing mortgage deal onto a new property. I currently have 3 years left of a 5 years fixed mortgage on my property at 2.69% interest rate - which is much better than the current interest rates in the UK which are around 5-6%.
I want to purchase a home with my partner, which would be considerably more expensive than my current property.
For example, lets say my home is worth £175,000 and I currently owe £125,000 on my mortgage, meaning I have £50,000 in equity in my home.
If my partner and I wanted to buy a house at £400,000; could I use my £50,000 equity, port the £125,000 remaining balance at 2.69% and get another mortgage for the £25,000 difference for my £200,000 (50% of the price of the home)?
Even if the £25,000 is at the current rates of 5-6%, because the £125,000 is at the lower, 2.69% interest rate, this should work out cheaper, even if there are additional setup fees for the £25,000. My partner would be in a similar situation for the other £200,000 of the property purchase price and they have their own property and mortgage.
So could I port my current mortgage rate, borrow more and purchase with my partner and keep my current deal?