As is the case with life, people’s needs constantly change.
It might be that 6 months into a 3 year car lease deal you realise that you probably did need a boot for the dogs after all. Or maybe you suddenly need to relocate or move home and have discovered that the 5 year fixed rate mortgage you recently took out is going to attract significant fees if you switch it.
Whilst we can’t help you on the car front, we do have some advice when it comes changing your property without changing your mortgage. More to the point, if you’ve heard of mortgage porting and are wondering ‘how do I port a mortgage?’ or ‘is porting a mortgage a good idea?’ then read on.
What is porting a mortgage?
To port a mortgage is to move a mortgage from one property to another. With some mortgages, this isn’t an option. With others, you can – in theory at least, as the final decision is generally at the lender’s discretion.
Why would I want to port a mortgage?
If you feel that you’re on a good mortgage deal and want to take it with you to your next property, then porting a mortgage is a good option. Similarly, if ending your current mortgage will incur a fee then you’ll probably want to avoid that, and that’s where mortgage porting can be useful.
What should I do if I want to port a mortgage?
As a Guildford mortgage broker, we often see people trying to port a mortgage themselves by going to the lender directly before realising that it’s much easier to use a professional. For the same reasons to use a mortgage broker when applying for a mortgage initially, we would recommend using a mortgage broker to port a mortgage.
What’s involved in porting a mortgage?
Sadly, porting a mortgage isn’t as simple as you might think. In fact, you will have to go through a mortgage application process, just as you would need to do when applying for any mortgage. The good news is that if you’re already a Complete Mortgages customer then we will have your information on file and a relationship with your lender, which should save time.
What if I now need to borrow more money?
If your next property requires a larger mortgage but you don’t want to – or can’t – change your current mortgage, then you can always take out a top up mortgage, either with the same lender or find a more competitive mortgage rate elsewhere. Yes, it would mean two separate mortgages with different end dates, but if you’re a client of ours then we’ll keep on top of this for you and make sure that you don’t fall onto the standard variable rate.
I’m downsizing and need to borrow less – what do I do?
If your mortgage needs have decreased but you’re locked into a mortgage that charges a fee for exiting then unfortunately you will be charged. Thankfully, you will only be charged a pro-rata early repayment charge on the difference.
Do you need to port a mortgage? If so, contact our team of Guildford mortgage advisers to find out how we can help you. You can reach us on 01483 238280 or info@complete-mortgages.co.uk.
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