However, lenders are more cautious than ever before, so it worth assuming that you will be taken through the affordability assessment [1].
The vast majority of people complete on their sale and purchase on the same day, so a ported mortgage deal will move from one property to the other and the lender will continue to get their monthly payments from you. Table notes: All figures are simplified for illustration purposes and do not include fees and other costs associated with buying and selling. It is certainly possible to port your existing mortgage and borrow more, but it is more complicated than keeping the loan amount the same.
So if you are able to port and one or both of these factors apply to you, it may be beneficial to do so. You need to look at all the charges and any penalty fees and compare the overall cost of porting versus redeeming your existing mortgage and applying for a new one.
When your sale completes, the mortgage loan on that property is repaid and the new loan for your purchase comes into effect. Yes, as long as the sale price exceeds the outstanding mortgage on it or you are able to pay the balance. The mortgage on the first property is repaid on completion of the sale and a new mortgage issued for the second property on completion of the purchase. If a mortgage is portable, it means the lender is happy to transfer the product to a mortgage on a different property.
The first mortgage must be redeemed and the borrower must apply for a new mortgage, but the interest rate and terms remain the same. The hotter your market the easier your sale Keep reading to discover… Everything you need to know about mortgages when you move What porting is, how it works and if you should do it How to make the most financially savvy decisions And lots more….
As Recommended By …. Table of Contents [hide]. Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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We'll get in touch with you as soon as possible about your enquiry. We'd like to stay in touch Let us do the hard work for you. If current rates are higher than your existing rate there is probably no need to think further.
However, if current rates are lower than your existing rate, you should consider whether porting really is in your best interest? This type of arrangement is less common in recent years given the relatively low interest rate environment we have all become used to. Tracker rates mirror changes in a public rate, such as the Bank of England base rate while standard variable rates are set by the lenders themselves and, as a result, are often higher than the tracker rates and may or may not change when public rates change although they usually do.
If you are lucky enough to have one of these older tracker rate mortgages, serious consideration should be given to porting the mortgage even though there are almost certainly no redemption penalties that would be charged by the lender even though you may well be able to get a lower initial rate with a new lender.
Of course, this assumes you are comfortable with the risk that interest rates could rise in the future. As you can see, there are a few factors to consider when you decide to move home. Some of them are obvious, some are less so. A good mortgage advisor will be able to help you understand the implications of all the options available and explain the impact of exercising these options both at the time of moving and in the future.
If you are considering moving to a new home, but you need advice on the best options for your personal circumstances, then our experienced advisors are on hand to assist.
Leave your details and we will be in touch for a no obligation discussion. Name Required Email Required Telephone Number Message When you submit your details using this form, VA Mortgages will process your information in order to contact you about your enquiry. For full information please read our Privacy Notice. What happens to your mortgage when you move? When you have a mortgage already, but you want to move house, what happens to your mortgage?
This is a common question from our customers, wondering if they can keep their mortgage when they want to sell their existing home and move to a new one. If you have a mortgage but want to move to a new house, you should consider the following: Does the mortgage have early redemption penalties?
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