Can I Port My Mortgage to a New Property?
If you’re in the market for a new property but have an existing mortgage, you might be wondering whether you can keep your existing mortgage without a penalty. This is what is known as a portable mortgage. Often, customers who are in the middle of a fixed rate deal and are looking to move ask “Can I port my mortgage?”. This is because they can avoid early repayment charges if their lender allows it.
Are All Mortgages Portable?
Simply put… no. However, in our experience, most mortgages provided by high street lenders are.
However, if you are with a specialist lender, then you may not have the option to port.
Either way, a quick call to your lender will confirm one way or the other.
Should I Port My Mortgage?
Even if porting is available to you, it might not be the right decision. A few things to consider are:
- Will your lender lend you the extra money you need to move?
- Are the additional funds on a different rate to the one you have on your current deal?
- Is it better to take a hit on the early repayment charge and swap to a different lender?
What is a Sub-Account?
Sub-accounts occur when you port your mortgage, but you required extra funding which ends up being on a different deal to the original amount. Ultimately, you still only have one mortgage and one direct debit, but two different rates of interest apply.
Down the line, having sub-accounts can be quite confusing as the different products will overlap each other. To get them back aligned at some point, you will need to let one of the sub-accounts drift onto the lenders’ standard variable rate for a period of time.
If you have any further questions regarding portable mortgages, get in touch.
Call us on 024 7688 0948 today.