Guys,
Can someone please check my maths?
Basic:
Property - £800k
Deposit - £152k
LTV - 81%
Mortgage - £2770, fixed for 5 years, 2.09%
ERC on existing Fix - £8kish.
Alternatively I could:
Property - £800k
Deposit - £152k
Port - £371k
To Finance - £276k
Mortgage -
1. Existing £1788, fixed for 2 more years, 2.34%
2. New Mortgage of £1142, fixed for 2 years (to match Port Mortgage), 1.79%
Monthly - £2930
Net Benefit - (£158 [the delta between the two proposals] * 24 months [the period]) £3.8k extra cost - subtract the £8k ERC that I wouldn't be paying, equals positive benefit of £4328. I.e. this route would save me £4328 despite the higher monthlies.
Or in other terms, I could pay a £4328 insurance policy to lock-in at 2.09%.
My big assumption on the alternate proposal is that you get the headline rate (1.79) when doing such porting+new borrowing deals.