Porting mortgage

[Mirrorxx]

I was hoping someone could explain how porting your mortgage works. We are still in our fixed deal but can port our mortgage however we want to borrow more. Does this have to be on the same Ltv as our existing mortgage? Or is it like having 2 separate mortgages with different ltvs and rates?

You call up and say you want to port it; they say if you can or not then need to value the new place and give you a final answer, with a bit of paperwork too. Not difficult but not as simple as it could be because they are afterall, a mortgage company...

You need to call them and give them all of the details and they will assess your affordability.

We have just tried...we would be going from owing around 200k here, to about 20kon our new house, but they've said no. If your circumstances or income have changed since you applied then it might not get accepted.

They usually only let you port upwards, so for example increasing mortgage from 200 to 250. You usually have them sort of running as one but with different rates, as the previous ones on offer will likely be different now. That may mean it is a better or worse rate depending on your current deal.

I spoke to them yesterday and they confirmed our mortgage is portable and we can borrow the additional amount. I just don’t understand how the deposit works. I think I will phone them again on Monday

We ported out mortgage when we moved house. It's like two separate mortgages just with the same bank. I can't help with the deposit as it was a normal moving house deposit we paid.

We ported to avoid penalty of coming out of our fixed rate early. You have two products running but they consider it as one mortgage . The thing is you end up on two different rates with the two products needing re-fixing at different times.can be a pain , but cheaper.

When you sell your equality becomes your deposit. Eg house value 200k, mortgage left to pay £150k = 50 k equity

We are in the process of porting our mortgage. With the added complication of help to buy. So we are putting down a 5% deposit, government is giving 20%, so we need a 75% mortgage. Our current mortgage is about half of that, so we are borrowing the other half and it acts like a second mortgage, different rate (based on the 75% LTV) our old mortgage is exactly the same.

Our current mortgage offer ends in 2 years, we are fixing our new mortgage for 5 years, so in 2 years time we will need to fix for 2 years or so, and there will be a period of time we will need to go onto a standard variable so we can basically remortgage the whole thing (and get rid of help to buy hopefully) and just have the one mortgage.

There will be a gap between completion of our sale and purchase so we have to pay the redemption fee on sale but it'll be refunded on purchase.

I had the same questions earlier on in the year. You are porting they rate and the amount so whatever LTV you have for your new property will be applied to your existing mortgage and your extra borrowing. It’s basically having two mortgages. As PP said we will tactically fix each rate/go on variable until a time where we can remortgage as one amount or move to another provider with no penalties.