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AIBU?

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Original poster

To think porting a mortgage should mean just that?

28 replies

Howhardcanitbereally · 12/05/2018 18:26

I'm hoping for some advice here! We have found our dream home and so ready to move from tiny 1 bed into a bigger home with our 2 year old twins. We are moving to a cheaper area so property we are buying is the same price as ours. All straight forward we thought.... We will just port the mortgage. But after some basic research I'm now panicking this won't be possible. We moved here 6 years ago, never missed a payment but when we got the mortgage we were both working. I'm not working because I had twins and they were born at 23 weeks and both have medical issues so I can't return to work. If we re apply we couldn't borrow the same amount we've had for 6 years and already have and have paid comfortably because his salary alone is not enough. It's madness. Please someone reassure me we can get round This? We are with Chelsea. Or are we just stuck here. Calling mortgage company tomorrow but just wondered if anyone has been through the same? We are desperate to move as we are 3rd floor flat and both my twins have cerebral palsy so need a ground floor, it would make life so much easier. Thanks in advance!

OP posts:
NewYearNewMe18 · 12/05/2018 18:39

A mortgage is a loan taken out against a property, the debt is secured against that particular property . When you move, you pay off that mortgage and take out a new one on your new property. A mortgage doesn't follow you round.

Lending rules are much tighter now to avoid the negative equity and debt the previous generation had so much trouble with.

Singlenotsingle · 12/05/2018 18:41

You can only port your mortgage if it's in the original mortgage deed

user1471499792 · 12/05/2018 18:41

I have also been looking into this. And my understanding is that you port the mortgage product not the actual mortgage. You still need to pass credit and affordability checks. But that’s only my understanding, I could be completely wrong

bilbodog · 12/05/2018 18:42

I would get advice from an independent advisor who can look at all sorts of mortgages from different companies and see what he says. You can port mortgages when you move but this may not apply to all mortgages - you would need to see if you are allowed to do this with yours. Good luck.

Original poster
Howhardcanitbereally · 12/05/2018 18:43

Thank you. But you can port your mortgage, our mortgage is portable, some aren't but you have to reapply to see you still meet criteria. Obviously if we stay here we will just keep paying as we have for the past 6 years but if we reapply we likely wouldn't get the mortgage we already have as our income has changed. It's a bit bonkers!

OP posts:
hampsteadholly · 12/05/2018 18:44

I wish it meant that too!

Original poster
Howhardcanitbereally · 12/05/2018 18:45

Sorry that reply was to the first response. We can definitely port our mortgage it's in our terms. But like everyone is saying it's not straightforward, we need to re apply. It's just frustrating as we only want exactly the same as we have now and we can easily afford the repayments and have done for 6 years but we wouldn't likely get it our I am no longer working. Just feeling despondent as I cant go back to work and we are stuck here. It's so hard to carry 2x 2 year olds up 3 flights or stairs daily!

OP posts:
Cuppaoftea · 12/05/2018 18:46

Go for a free appointment with a mortgage broker.

Gobbolinothewitchscat · 12/05/2018 18:46

It depends. We ported our fixed rate mortgage with HSBC. Weneeded to borrow a bit more so we have 2 HSBC mortgages that run along side each other. We had to pass new affordability checks though

Ginger1982 · 12/05/2018 18:47

Yup! We got a mortgage in 2014 when we both worked. Buying a new house and I thought they just transferred the mortgage and added a bit more on. Nope. Whole new application and our income has changed as I'm not working after DS. So we're not going to get as much as we hoped, despite the fact we've made every payment on time.

FowlisWester · 12/05/2018 18:48

the mortgage isn't portable as such... the rate you got is. That's basically what it means. And often say you've 60k on your current mortgage at 2%... new property is say 70k. You'd port over 60k at 2% and they'd offer you 10k at 3% or whatever their best rate/ deal is at the current time. So it's the product not the mortgage that is portable

BigPinkBall · 12/05/2018 18:49

We didn’t port our mortgage but when it came to the end of the fixed term they offered us a new fixed term with no credit checks or affordability or anything, we just had to sign to say we agreed to the new deal. The was with Santander but it’s worth checking.

Phillipa12 · 12/05/2018 18:49

We had this exact same problem 4 years ago, moving house and moving to a property where we were borrowing less and our mortgage company refuse us the mortgage on their new affordability programme, even though we had never missed a mortgage payment in the entire 7 years we were with them. Go see an independant motgage advisor, they will find you a mortgage.

megletthesecond · 12/05/2018 18:51

I'm with Chelsea. They wouldn't let me port my mortgage in 2014 as I'd become a lone parent since taking it out. I've always worked and overpaid my mortgage for a decade. Never missed a payment and have a good credit record. They wouldn't budge at all. (Still bitter about this tbh).
Things may be better now as I understand George Osbourne told the banks to slightly loosen the criteria and use their common sense.

FilthyforFirth · 12/05/2018 18:52

We had this very recently. We have a 'ported' mortgage, which we assumed meant we took the mortgage with us when we moved. Sadly I was informed by Halifax that the product, i.e. the rate at which you borrowed, you can take with you, but you still need to reapply for a mortgage. I was on maternity leave so we are having to wait until I go back to work. It is very annoying and you have my sympathy.

Original poster
Howhardcanitbereally · 12/05/2018 18:53

Thanks so much everyone really helpful! We don't want to borrow any more, just same amount. Definitely going to see a mortgage broker then. Fingers crossed! We would pass afforbility criteria surely as we can easily afford the payments. We wouldnt get through a full application where they have to take down your salary etc etc.

OP posts:
KirstyJC · 12/05/2018 18:54

Is there any chance you could use any benefits eg DLA or any tax credits to be your income? We had similar happen to us but it was about 12 years ago so before the affordability changes and we wanted to remortgage for the same amount to a different rate, with the same bank. She said the computer said no but with 2 years of bank statements showing our finances and going to a lower monthly repayment she knew we could afford it. I think she used CB and tax credits to get it up to the amount. But it might not be possible now I don't know. Definitely go for a mortgage broker and good luck!

GameTiles · 12/05/2018 18:55

OP I'm afraid you still have to pass affordability checks and they are now tighter. That doesn't mean you can't move, you just need new financial advice to determine what mortgage you can get.

Original poster
Howhardcanitbereally · 12/05/2018 18:56

Thanks everyone. Looks like it's a no go then. Just so need to move somewhere more accessible but looks like only way we can do this is to sell and rent. Hopefully the mortgage broker will have some good advice! Thanks again for all the replies.

OP posts:
43percentburnt · 12/05/2018 19:13

Are you looking to borrow more? Is the new property going to be the same value as your current property? If it’s more expensive are you putting more of your own cash in? (I am trying to establish how your loan to value will be affected).

Missingstreetlife · 12/05/2018 19:13

First speak to your provider and see what they offer.
You may have more equity in your property now.

RomeoBunny · 12/05/2018 19:17

If rates are much lower now than when you got the mortgage then you may find you're eligible to the same amount on lower wages. Speak to your mortgage company. We're not mortgage advisors. Well most of us aren't.

Arborea · 12/05/2018 19:17

Martin Lewis from moneysavingexpert.com has been looking at this issue. It's a blunt instrument of a policy and causes people like you unnecessary hardship. Have a look at his website and I hope you manage to move soon.

bluemascara · 12/05/2018 19:24

The term porting refers to you porting a deal you are tied into from one property to the next. For example if you borrowed £100k on a 5 year fixed and want to move 3 years into the term, you port your £100k (less whatever you've paid off) on that rate, and any additional borrowing that's required you do it on a new product. To port you must stay with the same lender.
The new loan in its entirety (the ported part plus the new product) will all have to be affordability and stressed tested. Even if you aren't borrowing any additional funds, it is classed as a new application.
If your circumstances have changed then the outcome to your application may be different.
IFA's have ways around lending criteria of banks. Maybe go see one of them to talk through your options.

Barbie222 · 12/05/2018 19:40

You need independent advice - I've paid for this in the past and it has been worth every penny. There are lots of products and you may be surprised at what you are able to afford.

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