What does porting your mortgage mean? And how do you port your mortgage?
Answer:
Simply put, if you already own a home with a mortgage, and are moving to a new
home, porting your mortgage means that you can apply your current mortgage
to your new home subject to meeting the original mortgage offer terms and
conditions which vary from lender to lender and also vary based on the original
mortgage product. Porting your mortgage can in some circumstances allow
you to keep your mortgage at the interest rate that you currently have rather than
having to risk getting a new mortgage with a potentially higher interest
rate.
If you
can keep the interest rate from your old mortgage, porting mortgages are most
common when there is an increase in interest rates.
Do be
aware that when you port your mortgage, you will not normally be required to
pay a mortgage release fee. This fee is determined by your mortgage lender and
is explained in your mortgage contract.
Tips for Porting Your Mortgage
1. Check your lender's porting criteria
You should check with your mortgage lender before you give up the idea
of porting your mortgage.
2. Move into your new home at the same time as you sell your current
home
Ideally you will need to move into your new home within 6 months of
selling your old home (subject to terms and conditions set out by your lender).
3. Submit your application to port your current mortgage rate to your
lender
If you are not approved, you can ask your mortgage lender for
alternatives or you may have to reapply for a new mortgage for your new home.
4. Your current mortgage doesn't determine your eligibility to port your
mortgage
The approval process for porting your mortgage is sometimes the same as
applying for a new mortgage. This means your lender may review your credit
report, your debt to income ratio, and your employment history. If any of this
has changed since you applied for your current mortgage, your application could
be rejected.
5. Don't port your mortgage without checking out other options first
Given that your lender will review your financial eligibility all over
again and it may affect your chances of porting the mortgage, why not check
that there aren't better deals available to you? You could save yourself
a lot of money by doing some comparison shopping. Make sure that you use
an independent mortgage broker rather than a mortgage broker who is tied to a
particular bank or who is limited to certain mortgage products.
Independent brokers can look across the entire mortgage market to find you the
best deal. Independent
brokers also often have access
to special rates and deals that are not available on the high street.
If you
would like to check that you have the best possible deal on your mortgage,
Anthony Cusack who is an experienced independent whole of market mortgage
advisor can check to make sure that you have the best possible mortgage deal. Anthony’s expert advice won’t cost you
anything. But not getting his advice
might just cost more than you were counting on if you don’t make sure you have the
best mortgage deal available.
Call
Anthony on 020 8280 9600 or click here to e-mail Anthony for your free, no obligation mortgage “check-up”.