When it comes to porting mortgages, you will find that pretty much all high street mortgages are portable. By doing this, you will be able to move it from one property to another without incurring any penalty.
A porting a mortgage can be helpful if you are looking to move into a new home and are currently involved in a contract with a fixed rate. Furthermore, you potentially avoid any early repayments charges that could have occurred.
Generally, most mortgages that are available to customers are portable, however, it doesn’t mean all are. Some specialist lenders will not allow this to happen. To find out if this is an option for you, speak to a mortgage lender who can confirm this for you.
As much as this is likely to be an option that is available to many homeowners, some may decide not to. This may be due to the lender not willing to lend them the required additional funds that are needed to move home.
Keep in mind that the additional funds will be at a different rate compared to the rate that your current mortgage deal is on at the time.
It may be helpful to take on those early repayments charges instead of staying where you are, however, this does come down to what your lender offers you.
When you decide to port your mortgage, a sub-account is created. This is where the additional funds are placed onto a different deal than the one you have on your current mortgage.
Even though you have a single mortgage and a single direct debit in your name, the different interest rates will apply to each.
When it comes to a sub-account, you may find you will be in some difficulty with it in the future. This is because different products will overlap one another over time.
In order to get your accounts aligned once again could result in one of the sub-accounts falling onto the lender’s standard variable rate for a certain amount of time. For further information regarding this, speak to an expert mortgage advisor in Coventry.
Whether you’re Moving House in Coventry, looking into getting a buy to let mortgage in Coventry, or need assistance with your self employed mortgage in Coventry, book yourself in for a free mortgage appointment to discuss your options with a mortgage advisor in Coventry further.
Date Last Edited - 01/09/2021