We tend to find that the majority of high street mortgages are portable. That said, you will have the capability to move it from one property to another without incurring any penalty.
Portable mortgages are beneficial if you are looking to move into a new home and are currently involved in a contract with a fixed rate. It may lead you to potentially avoid any early repayment charges that could have occurred.
While many mortgages available to customers are indeed portable. It doesn’t apply to all mortgages. For example, some specialist lenders will not allow this to happen. By getting in touch and speaking to your mortgage lender for a quick discussion can give you some confirmation on this.
Even though it will be there as an option more often than not, in many cases, homeowners may choose not to. Possibly the lender isn’t willing to lend them the necessary additional funds needed to move home.
It’s important to know that the additional funds will be at a different rate to the rate that your current mortgage deal is currently on.
Depending on what your lender offers you, it may even be more beneficial to take on those early repayment charges rather than staying where you are.
A sub-account on your mortgage gets created at the point where you decide to port your mortgage, with the additional funds placed onto a different deal than the one you have on your current mortgage.
In any case, although you have a single mortgage and a single direct debit in your name, different interest rates will apply to each.
Further down the line, having sub-accounts can be known to cause a bit of trouble. The reason for this is because different products will eventually overlap one another.
Managing to get them aligned once again could mean that one of the sub-accounts has to fall onto the lender’s standard variable rate for a particular amount of time. For more information, don’t hesitate to contact us to speak with a mortgage advisor in Coventry, and we’ll see how we can help you.
No matter if you’re moving house in Coventry, working with a buy to let mortgage or require help with a self employed mortgage. You can book yourself a free appointment around a time/date that suits you to discuss your options with a mortgage advisor further.