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Porting mortgage to move house but have to pay off debts first?

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We are moving house and wanting to port our existing mortgage to the new house. We want the same terms and the same amount and will be paying off all our debts with the equity. Also we will be putting down 100k deposit. Santander have today said that we need to sell our house first, pay off the existing mortgage and clear all debts and then apply for a new mortgage. This will mean us losing the house we want and also having no home whilst we wait for a new mortgage application to go through. Is this right??

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